Overview of key elements of Amazon's capabilities to disrupt the Age-Tech market

1. 1
Amazon in Age-Tech: 300M users + EBIT + tech = platform for wellness, food, home
High Margin Businesses Fund c. $20B/year in losses (EBIT $B)
Source/Notes: Morgan Stanley ‘What Happens Next’ Oct 2018; Note: High Margin includes AWS, Advertising, Subscriptions and Customer Care, Investment Businesses
are primarily pricing on e-commerce to drive incremental growth but also new businesses; CB Insights Amazon in Healthcare 2019
-40
-20
0
20
40
60
2014 2015 2016 2017 2018 2019 2020
High Margin Businesses Investment Businesses*
Voice
• 100M Alexa-enabled devices sold to date
• 63% share of smart-speaker market
• Developing HIPAA Compliant Apps and Integrating with 3rd-
party care Speakers (e.g. Lifepod)
Home IoT • Ring M&A $1B – positioning into home
Stores • Testing to develop Whole Food into Medical Clinics
Food
• Amazon Fresh and Amazon Pantry can be positioned for
prepared food delivery
• Investment in Deliveroo would position as a leader in UK food
delivery
Pharmacy • Pill pack M&A $1B – positioning into pharma distribution
Users
• 300M active customers
• 100M global prime subscribers
• 26% Prime share >55 (vs. 50%) = growth
Cloud/AI
• AWS is leader in Cloud services c. 32% share
• Acquired 7 AI companies since 2011
• Positioned to lead on Medical/HIPAA Compliant cloud
Employees
• 600K employees
• 1.2M employees in combination with JP Morgan and Berkshire
Hathaway
Position by Capability
Deepening Penetration by Amazon Prime of US HH (%)
0%
10%
20%
30%
40%
50%
60%
2015 2016 2017 2018 2019