Toys R Us is one of the most recent stores to announce it is going out of business. More and more physical retailers are closing because they cannot compete with the online giant, Amazon. Shervin Pishevar, a tech investor and entrepreneur, sent out dozens of tweets in February warning about the power that monopolies have been able to hold.
What are the problematic monopolies?
There are quite a few monopolies in the United States with too much power. These include, according to Shervin Pishevar, Amazon, Alphabet, Apple, Microsoft, and Google.
Why do the monopolies have too much power?
Shervin Pishevar has a few ideas as to why the monopolies have too much power. Part of it is because people don’t realize just how much power they hold. Another is because the monopolies are buying up all of the emerging startups before they have a chance to serve as competition.
If the monopolies continue, it will be the downfall of the economy because consumers won’t have a choice of where they buy.
What’s going on with Amazon now?
In 2018 alone, there are a lot of stores closing. Toys R Us is closing all 800 stores while Sears, Sam’s Club, Nordstrom, Macy’s, and many others are closing dozens around the United States. Many of them point to the competition of Amazon when asked why they are closing.
In addition to forcing many well-established brands to close, Amazon is also responsible for listening in on conversations according to many reports. The Echo virtual assistant, Alexa, has been accused of listening to conversations and ordering products that no one actually requested.
Additionally, Amazon has been busy with a lot of acquisitions lately. Shervin Pishevar likes to call these silent assassinations because the general public doesn’t realize they’re happening. They’re killing small businesses and becoming stronger in the process. Amazon owns such businesses as Imdb.com, Zappos, Audible, Goodreads, and Whole Foods Market.
Understanding just how much power Amazon has may open some eyes. If the monopolies are allowed to continue, entrepreneurs won’t stand a chance.