Amazon Primed: Warehouse Bezos Toured Tests Positive For COVID-19, Amazon Shipping On Pause, Just Walk Out Now Available

The warehouse that Amazon’s CEO, Jeff Bezos, toured on Wednesday, with minimal protective gear on, has now had its first positive case of COVID-19 per a message that was sent to workers of the warehouse. The worker was last there two days before Bezos toured and the site was cleaned up to Amazon standards which recent news stories have criticised. Bezos has not publicly commented about the issue.

Bloomberg has the story (subscription may be required).

Bezos made a surprise visit Wednesday to the warehouse, called FTW6, which is just north of Dallas Fort Worth International Airport. It’s among more than 100 similar sites around the U.S. where employees are toiling to meet a surge in online orders from customers sheltering at home. Bezos walked through the facility wearing a face mask, waving to workers and flashing thumbs up. He also visited a Whole Foods location, and Amazon posted video of his tours on Twitter. The FTW6 warehouse has been cleaned multiple times since the infected worker was last in the facility, according to a person familiar with the matter who asked not to be identified because they’re not authorized to discuss the details.

Bloomberg

In a move that will temporarily have FedEx and UPS popping champagne corks, Amazon is pausing its ‘Amazon Shipping’ product. In order to satisfy its own customer demand, Amazon needs to not deliver other people’s products right now. Likely a temporary move, Amazon won’t want to give up that lucrative part of its future any longer than necessary, the move is an important one on a few fronts. PR being one. The company is waging several PR wars that is sending political candidates who once criticised the company into hiding, Amazon and pals are winning on an important front; keeping people happy and indoors. Right now, few want to argue against that despite the human cost for Amazon workers.

The Motley Fool has a detailed take on the outcomes of the decision for Amazon and others.

Amazon has a serious capacity problem. It’s suspending Amazon Shipping “because it needs its people and capacity to handle a surge in its own customers’ orders,” according to a report from The Wall Street Journal. That capacity challenge is also why it’s prioritizing essential items in its warehouses and delaying Prime Day until at least August. Amazon Shipping and Fulfillment by Amazon are services that take advantage of excess capacity in Amazon’s fulfillment network. That’s how they’re able to produce strong profit margins for the company. But that capacity no longer exists. And there are no profits in those businesses if Amazon can’t leverage existing costs of operating warehouses and delivery trucks. Deprioritizing those services is the best move for Amazon’s business.

Motley Fool

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Amazon announced that their ‘Just Walk Out’ technology (used in Amazon Go stores) will be available to anyone who wants to buy it. Amazon explains in the FAQ on the new site that the company will be maintaining control and installation will be quick (a few weeks) which won’t freak anyone out…obviously. Time will tell how many Retailers and consumers trust this technology outside metropolitan cities. While a post-coronavirus world will likely see an increase in home-delivery, there will always be a need for stores locally and JWO technology could change the face of that industry in a short space of time for millions.

The solution works best in places that have high demand, long lines, or wherever customers are pressed for time. Although there is no need for checkout workers, retailers would still employ staff to greet and answer shoppers’ questions, stock the shelves, check IDs for the purchasing of certain goods and generally be much more accessible to help shoppers than by being fixed at a cash register. Amazon would oversee the installation of the technology which can take as little as a few weeks from the time work starts. For new store builds, Amazon work with retailers as part of the construction or remodel plans. For existing stores, Amazon work with retailers to install the technology while minimizing impact on current operations.

Tamebay

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