According to an article on Bloomberg.com, the retail giant Amazon is in the process of expanding its home services business to a total of 15 U.S. cities. Amazon previously launched services in four markets (NY, L.A., Seattle and San Francisco) in the spring. It reports that Atlanta, Chicago, Dallas, and eight other markets are now on the horizon.
The expansion is part of Amazon’s growth plans to build a service based revenue stream. This follows other aggressive expansion plans such as launching a “cloud computing division,” according to the article.
The company certainly has a knack for pursuing growth markets. It is estimated that “U.S. residents spend $640 billion yearly” on more than 900 home improvement services such as painters, plumbers etc. This being said it is no wonder that service revenue is the next big move for Amazon.
Is Amazon going too far with this expansion in order to satisfy investors, or does its business model and expansion plan into new market seem a wise move?
Original Article: http://www.bloomberg.com/news/articles/2015-07-22/amazon-expands-home-services-to-15-cities-in-pursuit-of-growth?cmpid=linkedin.company
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