Amazon's Jeff Bezos sets a new record as world's richest person, with net worth above $171 billion

Summary

• Jeff Bezos, Amazonfounder and CEO has recorded a new net worth of US$171.6 billion despite global pandemic and his divorce settlement.
• Amazon’s share price of US$2,890.30 (as on 2 July 2020), up by 0.40% swelled its CEO’s net worth, providing a new high that has further elevated his fortune above its level before his divorce in 2019.
• Amazon has benefited from soared demand of online shopping during coronavirus pandemic; leading to hiring of thousands of workforces.

As large and popular as Amazon.com, Inc. is today, it is difficult to imagine that it all started from a garage.

Presently, on revenue front, Amazon is the major e-commerce entity worldwide, or rather, we should address it as an internet behemoth.

Initially, when Jeff Bezos founder and CEO, Amazon began selling books via online marketplace in 1994, he believed the only path to succeed in the online business was to expand massively, and rapidly!

2005 is marked as the year of incorporation of the online platform, Amazon.com by its founder.

Currently, Amazon sells a range of products from hard copies of books to e-readers to cloud services.

Amazon now carries a varied range of products in music, clothing, health and beauty, electronics, grocery, automotive and much more.

You name anything, and it is available on Amazon.

Quite literally, Amazon has become a one-stop-shop for all consumer’s needs.

While executing customer orders, Amazon gets everything right.

The Company meticulously selects those products and services that customers might demand and then leverage the fulfilment centres around the world to facilitate quick shipping of the products.

Amazon has an exceptional relationship with vendors that empowers it to offer discounted pricing to its customers.

In a nutshell, the mantra for Amazon’s success is a diverse range of products and services, efficient supply chain and exceptional customer service.

A quick fact you should not miss!

The e-commerce giant is also ramping up plans to implement same-day-delivery via drones.

Did you read; Microsoft and Amazon: Titans of 2 different Worlds with Technology as Connecting Thread

Do you know, Amazon is setting off its first Robotic Fulfilment Centre in Western Sydney, Australia to speed up deliveries and double its capacity, giving company a stronger foothold in the Australian retail market.

Did you read; Hey, you know what! Amazon is building its first Robotic Fulfilment Centre in Sydney

Autonomous vehicles might be the next big thing for Amazon.

Of late, e-commerce giant unveiled its plans to acquire an Aussie-founded self-driving car start-up, Zoox. The Company is expected to splash out ~US$1.45 billion for this purchase and strengthen its presence in the promising autonomous driving space.

The acquisition is observed as the most substantial investment of the Company so far in self-driving car technology.

Did you read; Amazon Acquires Self-Driving Car Start-up Zoox for $1.45 billion

With the diversification of its offerings, the Company is continuously driving reach and relevance.

Jeff Bezos is the man behind the continued success of Amazon.

Throughout his journey, he has remained focused on the long-term, which is one of the reasons that make his business undertakings nothing short of moonshots:

Right from the start of transformation of the publishing industry via purchase of The Washington Post in 2013; to streaming of premium television shows and content creation through Amazon; to starting Blue Origin in 2000, an aerospace exploration company to revolutionise space travel.

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Jeff Bezos has broadened his empire extensively. He has bought numerous companies ranging from Whole Foods, Zappos, Twitch, and many more.

Also, through his business expeditions, he has also invested in companies such as Twitter, Basecamp, Rethink Robotics, Business Insider, and many others.

Hey, you know what! Jeff Bezos is wealthier than ever.

He has topped the charts of the rich list with the net worth of US$171 billion.

Amazon.com, Inc. (NASDAQ:AMZN) soared share price at US$2,890.30 (as on 2 July 2020), translated net worth of the CEO to reach a new record; pushing his fortune higher above its level prior to his divorce settlement in 2019.

As per Amazon’s latest proxy statement, Jeff Bezos owns or has voting rights to 15% of the Company’s outstanding stock.

As per his divorce settlement with his ex-wife, Amazon’s CEO gave her 25% of the couple’s Amazon’s shares worth US$37 billion at that time. While he obtained 75 percent of the couple’s Amazon stakes and maintained voting authority for residual stakes.

Following the divorce, his ex-wife signed the philanthropic commitment, The Giving Pledge and committed to give away at least half of her fortune to charity over her lifetime or in her will.

In the recent years, Jeff Bezos has also been quite active with his philanthropy which includes a US$10 billion to combat climate change and the US$2 billion Day 1 Fund that supports homeless families and creates preschools to support early childhood education.

In April 2020, Jeff Bezos announced that he would give US$100 million to Feeding America, a non-profit organisation to feed increasing number of out-of-job Americans.

Did you read; Is COVID-19 pandemic the mother of tech Innovation?

Lately, Amazon witnessed skyrocketed share price as the Company benefited from the huge growth in online shopping during coronavirus pandemic. The stay-at-home orders and lockdowns led shutdown of brick-and-mortar retail stores, pushed customers to flock towards online shopping.

In early April, Amazon announced that it was hiring an additional 75,000 workers subsequent to onboarding 100,000 employees in March to keep up with the soaring demand.

At the same time, the Company’s cloud computing business, Amazon Web Services (AWS), noted an upsurge in demands linked to the outbreak as well.

AWS aided the World Health Organization to introduce an app to support healthcare workers across the globe in caring for patients infected by coronavirus, as well as educate themselves through educational material, guidance, and live training sessions.

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Moreover, Amazon on 29 June 2020 announced plans to pay US$500 million as one-time ‘Thank You’ bonus to front-line workers and further appreciate them for supporting the Company in meeting the huge demand from online shoppers during the pandemic.

The outbreak of the pandemic and divorce with his wife represents the saga of two crisis in the journey of Jess Bezos’ life, which he has managed to sail through.