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Amazon Wants to be Everything to Everyone

The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
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Amazon Wants to be Everything to Everyone

The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid

Amazon is bolstering its e-commerce empire while continuing a march deeper into people's lives, from robots to healthcare and entertainment.
Innovations unveiled in recent days by the Seattle-based tech titan included a delivery van computer system to shave time off deliveries by its speed-obsessed logistics network, reported AFP.
Amazon Stores boss Doug Herrington said that the technology enables vans to recognize stops and signal which packages to drop off.
"When we speed up deliveries, customers shop more," Herrington said.
"For 2024, we're going to have the fastest Prime delivery speeds around the world," he added, referring to Amazon's subscription service.
On top of that, according to Herrington, Amazon last year managed to cut 45 cents off the cost per unit shipped, a huge savings when considering the massive volume of sales.
Prime is the 'glue'
Amazon last year recorded profit of more than $30 billion on revenue of $575 billion, powered by its online retail operation and its AWS cloud computing division.
"They have this whole flywheel model with Amazon Prime membership in the middle," said eMarketer analyst Suzy Davidkhanian.
"That's the glue that keeps everything together."
Businesses include retail, advertising, cloud computing and streamed movies and music.
But that very model has the 30-year-old company facing a US government lawsuit, accused of expanding an illegal monopoly and otherwise harming competition.
Amazon makes money from data gathered about consumers, either by targeting ads or through insights into what products they might like, Davidkhanian said.
That was why Amazon paid for expensive rights to stream NFL American football games on Prime Video in a move that promises to help it pinpoint fans of the sport.
Amazon's digital assistant Alexa can order items on command and has been even built into appliances such as washing machines to let them automatically buy supplies like laundry soap as needed.
A 'pocket pharmacy'
Amazon showed off enhancements to its virtual health care service called One Medical.
For $9 a month Prime members are promised anytime access to video consultations with health care professionals, along with record keeping and drug prescriptions.
An Amazon Pharmacy takes advantage of the company's delivery network to get prescriptions to patients quickly, striving for speeds of less than 24 hours for 45 percent of customers by the end of next year.
"We're building a pharmacy in your pocket that offers rapid delivery right to your door," Amazon Pharmacy chief Hannah McClellan said, referring to the option of using a smartphone app.
The healthcare market promises to be lucrative for Amazon, which is "trying to be the platform that has everything for everyone," said analyst Davidkhanian.
Real world wrinkles
Amazon has suffered setbacks when it comes to brick-and-mortar stores but it continues to strive for a winning strategy.
The company next year will open its first "automated micro warehouse" in Pennsylvania, next to a Whole Foods Market organic grocery shop, the chain it bought in 2017.
People will be able to pick up certain items selected online, with orders filled by robots, after shopping next door for fresh produce and groceries.
Meanwhile, Amazon is ramping up use of artificial intelligence at its online store with tools helping sellers describe and illustrate products.
Product labels will change according to the user, displaying terms likely to catch their attention such as "strawberry flavor" for some and "gluten-free" for others.
"The things that Amazon is doing with AI are to make sure that you go from researching something to making the purchase as quickly as possible," Davidkhanian said.
At the logistics center near Nashville, robotic arms deftly placed packages in carts that autonomously made their way to trucks.
Logistics center automation improves safety and frees up workers for more interesting tasks, according to Amazon robotics manager Julie Mitchell.
However, critics cite delivery speed pressure and other factors as making Amazon warehouses more dangerous than the industry average.

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States Sue TikTok, Claiming its Platform is Addictive and Harms the Mental Health of Children

This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)
This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)
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States Sue TikTok, Claiming its Platform is Addictive and Harms the Mental Health of Children

This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)
This photograph taken in Mulhouse, eastern France on October 19, 2023, shows the logo of the social media video sharing app TikTok reflected in mirrors. (AFP)

More than a dozen states and the District of Columbia have filed lawsuits against TikTok on Tuesday, alleging the popular short-form video app is harming youth mental health by designing its platform to be addictive to kids.

The lawsuits stem from a national investigation into TikTok, which was launched in March 2022 by a bipartisan coalition of attorneys general from many states, including California, Kentucky and New Jersey. All of the complaints were filed in state courts.

At the heart of each lawsuit is the TikTok algorithm, which powers what users see on the platform by populating the app’s main “For You” feed with content tailored to people’s interests. The lawsuits also emphasize design features that they say make children addicted to the platform, such as the ability to scroll endlessly through content, push notifications that come with built-in “buzzes” and face filters that create unattainable appearances for users.

In its filings, the District of Columbia called the algorithm “dopamine-inducing,” and said it was created to be intentionally addictive so the company could trap many young users into excessive use and keep them on its app for hours on end. TikTok does this despite knowing that these behaviors will lead to “profound psychological and physiological harms,” such as anxiety, depression, body dysmorphia and other long-lasting problems, the complaint said, The AP reported.

“It is profiting off the fact that it's addicting young people to its platform,” District of Columbia Attorney General Brian Schwalb said in an interview.

Keeping people on the platform is "how they generate massive ad revenue," Schwalb said. "But unfortunately, that's also how they generate adverse mental health impacts on the users.”

TikTok does not allow children under 13 to sign up for its main service and restricts some content for everyone under 18. But Washington and several other states said in their filing that children can easily bypass those restrictions, allowing them to access the service adults use despite the company's claims that its platform is safe for children.

Their lawsuit also takes aim at other parts of the company’s business.

The district alleges TikTok is operating as an “unlicensed virtual economy" by allowing people to purchase TikTok Coins – a virtual currency within the platform – and send “Gifts” to streamers on TikTok LIVE who can cash it out for real money. TikTok takes a 50% commission on these financial transactions but hasn’t registered as a money transmitter with the US Treasury Department or authorities in the district, according to the complaint.

Officials say teens are frequently exploited for sexually explicit content through TikTok’s LIVE streaming feature, which has allowed the app to operate essentially as a “virtual strip club" without any age restrictions. They say the cut the company gets from the financial transactions allows it to profit from exploitation.

Many states have filed lawsuits against TikTok and other tech companies over the past few years as a reckoning grows against prominent social media platforms and their ever-growing impact on young people’s lives. In some cases, the challenges have been coordinated in a way that resembles how states previously organized against the tobacco and pharmaceutical industries.

Last week, Texas Attorney General Ken Paxton sued TikTok, alleging the company was sharing and selling minors' personal information in violation of a new state law that prohibits these practices. TikTok, which disputes the allegations, is also fighting against a similar data-oriented federal lawsuit filed in August by the Department of Justice.

Several Republican-led states, such as Nebraska, Kansas, New Hampshire, Kansas, Iowa and Arkansas, have also previously sued the company, some unsuccessfully, over allegations it is harming children's mental health, exposing them to “inappropriate” content or allowing young people to be sexually exploited on its platform. Arkansas has brought a legal challenge against YouTube, as well as Meta Platforms, which owns Facebook and Instagram and is being sued by dozens of states over allegations its harming young people's mental health. New York City and some public school districts have also brought their own lawsuits.

TikTok, in particular, is facing other challenges at the national level. Under a federal law that took effect earlier this year, TikTok could be banned from the US by mid-January if its China-based parent company ByteDance doesn't sell the platform by mid-January.

Both TikTok and ByteDance are challenging the law at an appeals court in Washington. A panel of three judges heard oral arguments in the case last month and are expected to issue a ruling, which could be appealed to the US Supreme Court.