Amazon Creating A Services Marketplace Online
November 28, 2014
A few thoughts:
- This is a very interesting way to take advantage of a number of existing Amazon technologies–primarily their payment processing and review system.
- Services are an increasingly important part of the economy and is less subject to commoditization. This is Amazon dipping into a massive growth area by commoditizing discovery and payment. It also offloads some of the risk from both sides of the transaction. It’s very bold, possibly brilliant.
- If you have tried to find a reliable carpenter, electrician, plumber, house cleaning service, etc lately, it should be obvious the value that Amazon can provide. Even as a subscriber to Angie’s List, which has been invaluable, finding reliable, affordable, and quality services is still a frustrating experience.
- This is why technology companies get huge valuations. It is hard to anticipate just how technologies to become the first online booksellers will lead to a massive number of accounts with credit cards and a strongly trusted brand. It is hard to anticipate how book reviews and powerful search andfiltering become the way you find people to come into your home and fix a toilet. But truly, it’s hard to anticipate the limits of a company with massive reach into people’s wallets that scales.