Amazon will invest $1 billion in new ideas
Amazon.com announces plans to invest $1 billion in companies developing logistics, supply chain management and security technologies, as retailer seeks to keep tabs on new ideas that could help its main activity.
The Seattle-based company announced last week that it was launching the Amazon Industrial Innovation Fund, a venture capital investment program that will support companies “at all stages” working on technology to increase commerce delivery speeds. electronics and improve the worker experience in warehousing and logistics. Amazon did not specify how many companies it aims to invest in, or a timeline for the program.
Alex Ceballos Encarnacion, vice president of global business development, said in an Amazon blog post that target companies can work with Amazon or choose to grow on their own. “We’re excited to help advance these technologies as online shopping becomes even more important for people looking for convenience and time savings,” he said.
Amazon’s business development group has a long history of buying stakes in other companies, including several Amazon partners. The strategy allows Amazon to explore new and emerging technologies and share in the benefits of growth that can follow a relationship with the gigantic retailer.
In recent years, Amazon has sought to publicly link the group’s work to corporate priorities, including investments in speech and voice recognition software through the Alexa Fund and a $2 billion fund targeting climate technology. The new fund’s focus on employee experiences comes as Amazon faces criticism from politicians and unions for its fast pace of work and high injury rates at some logistics facilities.