Amazon is closing on Walmart as the biggest employer of labour: Amazon reported 1.125 million employees at the end of Q3 2020. Walmart employs 1.5 million people in the US but 2.2 million globally. Looking at the chart, you see about 430,300 employees in 10 months, or +50% from a year ago. Yes, those asset-lite messages on ecommerce operations have fallen apart: I have long maintained that there is nothing digitally leverageable on ecommerce when you look at the marginal cost trajectory. Ecommerce operators exhibit the typical average fixed cost shape as they gain scale.
Amazon could even overcome Walmart in that huge record: the world’s largest employer of labour as it ramps up employee headcounts over the next two years. Largely, as Amazon builds up its logistics, we are learning quickly that ecommerce can indeed power a new labour force. This could be a good outcome as many had postulated that the rise of ecommerce could bring doom in the labour force.
Yes, the question is this: how far will Jeff Bezos, the boss of Amazon, get in his mission of absolute domination of retail America? Amazon is worth $1.59 trillion while “smaller” Walmart commands $433 billion. Yes, Amazon can buy Walmart and still have a change of $1 trillion+. That is all textbook analysis to help us see what is at stake here.
A nation rises when pioneering entrepreneurs emerge. America has many in abundance, luckily for it. Look at the curve, it is all the way to a great parabolic one: those are jobs and opportunities.
Nigeria: blessed will be when your pioneering entrepreneurs are unleashed, untethered by the bounds of state capitals and Aso Rock, to rise to the mountaintop. Amen to that, somebody!
1. Advance your career with Tekedia Mini-MBA (Sept 13 – Dec 6, 2021): 140 global faculty, online, self-paced, $140 (or N50,000 naira). Click and register here.
2. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.3. Register and join me every Saturday at Business Growth Playbooks w/ Ndubuisi Ekekwe (Sept 4 – Oct 23, 2021), Zoom, 4pm WAT; costs N20,000 or $60.