Business

Amazon’s 2nd employee says the company should be broken up

One of Amazon’s first employees, who helped build the company from scratch, has come out in favour of breaking up the e-commerce behemoth.

Amazon Founder and CEO Jeff Bezos hired computer programmer Paul Davis in 1994 -- his second employee at the company.

Mr. Davis has told ReCode that Amazon needs to separate from “Amazon Marketplace” which allows more than 2.5 million third-party sellers to sell products.

“There’s clearly a public good to have something that functions like the Amazon Marketplace. If this didn’t exist, you’d want it to be built,” Mr. Davis was quoted as saying. “What’s not valuable, and what’s not good, is that the company that operates the marketplace is also a retailer. They have complete access to every single piece of data and can use that to shape their own retail marketplace.”

Mr. Davis wrote the codes for the first Amazon.com website. He left the company as he was a technical person with little interest in playing a role in the growth of the company.

Last week, Mr. Davis posted an online comment regarding a New York Times article on Amazon.

“For nearly two decades. Amazon has used its control of its marketplace to strengthen its own hand as a retailer. This should not be allowed to continue,” he wrote.

An Amazon spokesperson told ReCode, “sellers are responsible for nearly 60% of sales in our stores. They are incredibly important to us and our customers, and we’ve invested over $15 billion this year alone from infrastructure to tools, services, and features to help them succeed.”

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Printable version | Feb 22, 2020 9:42:46 AM | https://www.thehindu.com/business/amazons-2nd-employee-says-the-company-should-be-broken-up/article30378557.ece

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