Companies and Brands
Does Amazon Really Need to Buy Robots? (AMZN)
Published:
Last Updated:
Amazon.com Inc. (NASDAQ: AMZN) has proven it has an ability to spend money on just about anything. Yesterday’s news that the online retail giant was going to spend some $775 million to acquire Kiva Systems Inc. is one thing, but there is a question that needs to be asked here in general: Does Amazon need to be buying robotic systems for shipping centers when so many online warehouse outfits use the same systems?
Kiva is a developer of robots used to operate shipping centers. The company notes on its site, “If a product is picked as eaches or cases to satisfy orders, a Kiva system will handle it more accurately, productively and cost-effectively than any traditional automation approach.”
So, the question is how much this will save the company through time. It claims to have a tripling of productivity and a one- to two-year return on investment. With it being in so many online retailing warehouses already, will Amazon.com decide which customers of Kiva it wants to keep and which it would only be helping compete against Amazon if it keeps them?
Maybe this will be a new profit-center for Amazon, but there is also a risk that Amazon could begin to stop servicing certain customers beyond the time frame of an existing contract. Who knows what Bezos is really up to and whether this will help Amazon’s already thin margins. Maybe if nothing else, this acquisition can help build Starship Bezos.
JON C. OGG
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.