Gen Z is getting tired of Amazon

💤 Enough of Amazon

Gen Z, the generation known for their social media savvy and ethical consciousness, is not all too excited about Amazon.

According to a recent Mintel report:

• 47% of Gen Z shoppers are actively trying to cut back on their Amazon purchases.

• A whopping 60% of Gen Z believes Amazon wields too much power.

• 39% are straight up tired of hearing about the company

❓️ But why

So, what's behind this shift? It turns out, Gen Z values personalization over complete privacy, wanting to discover new brands that may not be found in the vast Amazon machine.

They also want to support businesses that give back to their communities, engage with their customers, and have a sense of belonging.

• Nearly 20% of adults would ditch their Prime memberships if another platform offered similar perks

🔎 Collecting controversies

Amazon is no stranger to controversies though.

Last January, they were fined $35 million by French regulators for having an "excessively intrusive system" to monitor its warehouse employees.

They also got sued for putting putting a fee to remove ads on top of their subscription.

Amazon Prime Video used to cost $8.99 per month for Prime Video or $14.99 for Prime subscribers.

Now, if you want an ads free Amazon Prime Video experience, then you need to pay an extra $3 on top of the subscription.

Lyft accidentally puts extra '0' in earnings report

✍️ From 50 to 500

Lyft, the popular ride-hailing company, took investors on a ride recently, not with a new service or innovative feature, but with a simple typo.

In their fourth-quarter earnings release, an extra zero snuck into the "Adjusted EBITDA margin expansion" section, leading it to state a growth of 500 basis points (5%) instead of the intended 50 basis points (0.5%).

• That extra ‘0’ added 60% to Lyft's stock price

Automated trading algorithms, programmed to react to certain financial data, went into overdrive, interpreting the inflated number as a sign of good performance.

📈 “My bad”

The joyride was short-lived though. Within minutes, Lyft acknowledged the mistake and issued a correction, clarifying the actual, much lower, margin figure.

But the apology didn’t completely erase the initial impact. While the stock price retreated from its peak after the correction, it still remained higher than before the release.

The company surpassed analyst expectations for its fourth quarter, showcasing healthy growth in gross bookings and exceeding forecasts for the following quarter.

Is Wish making a comeback? Wish gets bought by Qoo10

💸 Buying an ecommerce platform

Qoo10, Singapore-based online marketplace, has agreed to acquire Wish, a once-high-flying US ecommerce platform, for a mere $173 million (compared to being worth $14 billion in 2020).

Why?

• Qoo10 wants to expand its global footprint and Wish is looking for a much needed turnaround.

• Qoo10, known for its focus on Southeast Asian markets, sees this deal as a golden ticket to get new customers in the US and Europe.

• They also gain access to Wish's established logistics network

They hope to improve their customer experience by offering a wider product selection and access to Qoo10's merchant network. Wish merchants stand to benefit from integrated logistics and more efficient delivery.

🌎️ Going global

This acquisition is particularly noteworthy because Korean e-commerce companies rarely go global.

Qoo10 hopes to become a gateway for small Korean businesses seeking to expand internationally, especially against competition like Shein and Temu.

While the deal is still pending shareholder approval and other formalities, it is expected to close in the second quarter of 2024.