NewCo Daily July 19 2017
The Big Five in tech are eating each others’ lunch
When the top five companies by market cap are all roughly in the same business, they’ll inevitably start going after each other’s core business. As for startups working on adjacent markets? As long as those markets are large enough, or support one of the Big Five’s larger business goals — well they’re just an hors d’oeuvre.
While Facebook has been aggressive in the past (its Instagram and WhatsApp acquisitions all but insured Twitter and Snapchat’s woes), Google takes this week’s crown as the most omnivorous of the bunch. Not only is the company taking on Microsoft’s LinkedIn with its new Hire service, its also shaking Facebook’s core moneymaker — the newsfeed. Yesterday Google announced a new newsfeed product that looks and feels an awful lot like Facebook’s newsfeed product — minus the baby pics and kitten videos (and, one presumes, the fake news). Built on top of Google’s massive knowledge of its customers’ preferences, search history, and app usage, the newsfeed product has a decent chance of stealing valuable attention from Facebook’s core customer set (and, let’s face it, Twitter is most likely not pleased with this development as well).
And while Google takes this week’s crown, Amazon’s also bellying up to the lunch buffet. A report in Quartz this weeks notes that Amazon recently filed a trademark for the tagline “We do the prep. You be the chef.” That sank Blue Apron’s newly minted stock to all time lows —and the beleaguered startup’s only been public for a few weeks. Not content with spooking the entire home grocery market (remember, it recently bought Whole Foods), Amazon also announced Spark, a shopping service cum social network that, you guessed it, takes the form of a feed that looks an awful lot like Instagram. Only Amazon Prime members can post products to Spark, but any Amazon customer can browse and buy from the “shoppable” feed. While press reports focused on Spark as a challenge to Facebook’s Instagram, it’s likely that executives at Pinterest are sleeping less soundly this week as well.
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