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Whole Foods Deal Shows Amazon’s Prodigious Tolerance for Risk

| Written by Nick Stumo-Langer | No Comments | Updated on Jun 17, 2017 The content that follows was originally published on the Institute for Local Self-Reliance website at https://ilsr.org/whole-foods-deal-shows-amazons-prodigious-tolerance-for-risk/

The New York Times – June 17, 2017

Written by David Streitfield

Joke all you want about drone-delivered kale and arugula. Amazon’s $13.4 billion bet to take on the $800 billion grocery business in the United States by acquiring Whole Foods fits perfectly into the retailer’s business model.

Unlike almost any other chief executive, Amazon’s founder, Jeff Bezos, has built his company by embracing risk, ignoring obvious moves and imagining what customers want next — even before they know it.

Key to that strategy is his approach to failure. While other companies dread making colossal mistakes, Mr. Bezos seems just not to care. Losing millions of dollars for some reason doesn’t sting. Only success counts. That breeds a fiercely experimental culture that is disrupting entertainment, technology and, especially, retail.

Mr. Bezos is one of the few chief executives who joke about how much money they’ve lost.

“I’ve made billions of dollars of failures,” Mr. Bezos said at a 2014 conference, adding that it would be like “a root canal with no anesthesia” if he listed them. …

Some Amazon critics would like the Whole Foods deal to be the trigger for reining in the company. The Institute for Local Self-Reliance, a frequent foe of Amazon, noted that the company is “rapidly monopolizing online retail” and that both Prime and Echo “are strategies for locking in consumers and ensuring they don’t shop anywhere else.” Amazon declined to comment for this article.

Read the full story here.