Alexa, Who Is The Competitor Of Amazon?

Amazon is a name that everyone has heard in today’s time. It is the second company after Apple to hit a trillion-dollar evaluation. Most often, we use a particular service but do not pay attention to other similar players in the market. Have you ever thought about who is the competitor of Amazon? Now, there cannot be one competitor to any company. But in the case of Amazon, it is more interesting. As Amazon is in many different business domains, it has multiple competitors from different domains. In this article, I will try to cover the business aspect of Amazon and its different competitors.

Amazon’s Business Portfolio

Amazon was started by Jeff Bezos in the year 1994 out of a garage. You know Amazon as a platform for buyers and sellers to engage and do business. However, there are many other business domains in which Amazon operates. Moreover, they have established a very valuable name in the market too.

Here are the business domains in which Amazon operates

1. E-Commerce

You have the most famous “amazon.com” under the e-commerce domain. Apart from this, they also support merchant partnerships and third-party partnerships.

2. Hardware And Services

Under this, they offer Alexa, Prime Video, Amazon Music, and some secondary services.

3. Amazon Web Services And Subsidiaries

Amazon Web Services (AWS) is a cloud computing technology that allows people to use cloud storage for their business needs. Besides this, Amazon offers Audible, Goodreads, Twitch, and many other subsidiaries.

Apart from this, Amazon is also involved in a lot of other business deals and mergers that are out of the scope of the article.

Who Is The Competitor Of Amazon?

As discussed above, there are multiple domains in which Amazon operates. So Amazon has competitors in every field. I will cover the main competitors with details to provide a better picture.

Amazon Ecommerce Competitors

In the e-commerce domain, Amazon holds the highest market cap and is the leading player in the market.

It has a market cap of $1.220 trillion.

Let us check different competitors by market cap.

1. Alibaba

• It has a current market cap of $167.19 billion.
• It is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Jack Ma is the funder of Alibaba. It was founded on 28 June 1999in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services.

2. Meituan

• It has a current market cap of $95.95 billion
• Meituan is a Chinese shopping platform for locally found consumer products and retail services including entertainment, dining, delivery, travel, and other services. The company is headquartered in Beijing and was founded in 2010 by Wang Xing.

3. Pinduoduo

• It has a current market cap of $60.21 billion.
• It has created a platform that connects farmers with consumers directly through its interactive social commerce shopping experience. In 2021, 16 million farmers supplied their fruits and vegetables to Pinduoduo users.

4. Jingdong

• It has a current market cap of $57.24 billion.
• The company was founded by Liu Qiangdong on June 18, 1998, and its retail platform went online in 2004. It started as an online magneto-optical store, but soon diversified, selling electronics, mobile phones, computers, and similar items.

5. Mercado Libre

• It has a current market cap of $41.63 billion.
• It is an Argentine company headquartered in Montevideo, Uruguay, incorporated in the United States that operates online marketplaces dedicated to e-commerce and online auctions, including mercadolibre.com.

If you closely observe the above 5 competitors to Amazon, four have their country of origin in China. It is a pretty massive achievement for the Chinese economy. However, these four e-commerce companies are still way too behind Amazon.

Look at the difference in the market cap of Amazon of Alibaba. Massive!

Amazon Web Services Competitors

Amazon offers Amazon Web Services, commonly called AWS, as its subsidiary. It offers cloud computing services and APIs to individuals, companies, and enterprises, on a pay-to-go basis. One of the services under this is Amazon Elastic Compute Cloud (E2C). It offers you a cluster of computers with processing capabilities that you can use to provide your services. AWS services are delivered to customers via a network of AWS server farms located throughout the world.

Until a few years, you could have said that Amazon was the leading and sole provider of such services in the market. However, in recent years, there have been many other companies jumping into this field and giving tough competition to Amazon.

1. Google Cloud Platform

It is the cloud computing service provided by Google. It runs on the same infrastructure that Google uses for its other services like Gmail, GDrive, YouTube, etc. Along with computing, it provides a robust framework for data storage, data analytics, and machine learning support.

Google Cloud Platform provides infrastructure as a service, platform as a service, and serverless computing environments.

2. Microsoft Azure

It is a service operated and run by Microsoft. It operates on Microsoft-managed data centers for computing services. It provides software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) and supports many different programming languages, tools, and frameworks, including both Microsoft-specific and third-party software and systems.

3. IBM Cloud

It is the set of cloud computing services offered by The International Business Machines (IBM) Corporation. It includes around 170 services for cloud computing, Artificial Intelligence, and data management. It provides its services to private, public, and hybrid environments.

4. Oracle Cloud

It is a cloud computing service offered by Oracle Corporation providing servers, storage, network, applications, and services through a global network of Oracle Corporation-managed data centers. You can use these services to build, deploy, integrate, and extend applications in the cloud.

5. Dell Technologies Cloud

It provides you the cloud computing services with a combination of Dell EMC and VMware infrastructure. You can use this cloud service and manage multiple applications and projects on the cloud with ease. It also has massive internal support for data-driven operations that lets you manage the entire project efficiently.

Here is the current market share of the above cloud computing services for quarter 1, 2022.

Amazon Digital Audio Competitors

Amazon provides digital audio streaming through its popular service Amazon Prime Music. It is quite a famous audio service running globally. It is currently covering international music along with regional music from different countries across the globe.

1. Spotify

In the online music streaming service, Amazon is not leading the market. Spotify is the current market leader, holding a market cap of around $18.75 billion. What makes Spotify unique is the recommendation engine that recommends music to its users. It may not be a unique proposition, but Spotify does it better than anyone else in the market.

2. Apple Music

It is the online music service provided by Apple Inc. It currently holds the second-largest market cap of around $5 billion. The current trends show that the market cap would increase in the following months. 88 million people subscribed to Apple Music as of June 2021.

The above table clearly shows the massive difference in the number of subscribers of Spotify as compared to others.

There are other small and mid-size companies in the online music streaming service too. However, their share and current revenue trends are way too less as compared to the above-mentioned giants.