3/ The catalyst for Prime was annoyance with Amazon's existing free-shipping offer ("Super Saver Shipping").
It was too complicated:
◻️ You had to hit a min. order of $25 (which created a complicated recommendation system)
◻️ Then wait 8-10 days for the items (customers pissed)
4/ At one Oct. 2004 meeting, the idea of an "all you can eat" shipping price came up. Bezos suggested that they also bundle in "faster shipping".
One employee accidentally blurted out, "we should have it ready by the next earnings" and Bezos said “that would be a great time."
5/ The timeline coincided w/ the '04 Xmas season, when AMZN suffered major stability issues.
Despite the challenges, Bezos was fixated on the idea:"I’m going to change the psychology of people" comparing Amazon to others.
He wanted AMZN's value to be crystal clear.
6/ In the early 2000s, Costco's CEO Jim Sinegal explained to Bezos the power of memberships.
"The membership fee is a one-time pain, but it’s reinforced every time customers walk in and see 47" TVs that are $200 less than anyplace else. It reinforces the value of the concept."
7/ Bezos wanted an MVP in 4 weeks, but his team said that was impossible
In the end, he promised to delay the Amazon earnings date (and new shipping program announcement) if an MVP could be delivered in 6 weeks.
8/ The project was code-named "Futurama" and was free to poach talent from any division...in exchange, they gave out this t-shirt.
The front reads: "Futurama"
The back reads: "Shipping 6 weeks or less. Guaranteed."
9/ The secretive project pissed off a lot of people:
◻️ Other divisions randomly lost team members
◻️ Finance people worried about the economics of "unlimited free shipping"
◻️ The scalability of the program -- especially if customers LOVED it -- was a huge challenge
10/ Bezos gave the name.
He got up one meeting and said "We'll call it Prime." Marketers on the team tried to dissuade him and came up with 20 alternatives.
One employee remembers "He was so convinced Prime was the right name." (the geeks loved it b/c of "prime number")
11/ With 100hr work weeks across the team, the deadline was met.
In February 2005, Amazon Prime launched with this email.
It offered unlimited 2-day shipping on millions of items for $79/year (compared to a 2-day shipping cost of ~$10 for a book, it was a no brainer).
12/ The profitability of the project hinged on the ops team lowering the cost of 2-day fulfillment.
It became a self-fulfilling prophecy:"If customers liked Prime, the demand would go up. And because the demand would go up, we had more freedom to build new fulfillment centers."
13/ In Bezos' original plan, he wanted 2-day shipping to "draw a moat around" Amazon's customers.
Prime added to the moat over the years (there are now 30+ benefits):
2011: Amazon Prime Video
2014: Amazon Music
2015: Amazon Prime Day
2017: Whole Foods
2019: "1-day shipping"
14/ Prime members are very valuable: they spend $1500/year vs. $635/year for non-members.
For @benthompson, the Prime bundle is "churn" management" (AKA keep people in the Amazon ecosystem):
15/ The $8B+ acquisition of MGM (4k films, 17k TV shows) is the latest Amazon move to boost the media portion of its bundle:
◻️~$19B on content spend in the past 2 years
◻️$10B (over a decade) for NFL’s Thursday Night
◻️$465m for S1 "Lord of the Rings"
16/ The retention numbers for the Prime bundle are outrageous:
◻️ 64% of trials convert after a trial
◻️ 93% renew after one year
◻️ 98% renew after 2 years
17/ The launch of Prime was the start of an incredible 20-month run for Amazon that laid the ground work for its empire:
◻️ February 2005: Prime
◻️ March 2006: Amazon Web Services (AWS)
◻️ September 2006: Fulfilment By Amazon
The invention of bánh mì is a combination of climate, trade and urban layout of Saigon in late-19th century designed by French colonist.
When the French captured the area in 1859, most economic activity in the region took place along the Saigon river.
The population built makeshift homes tightly bundled by the river banks. Outgrowth from this eventually lead to narrow alleyways between many buildings that is trademark of the city (the Khmer named the region Prey Nokor then French renamed it Saigon and then it was renamed to Ho Chi Minh City in 1976 after end of Vietnam War).
Over decades, the French created European street grids and built wide Paris-type boulevards in the city to funnel commerce to larger markets (also make the city easier to administer).
It was at these markets that French baguettes were introduced and traded.
Bánh mì bread is known for being flaky and crispy on the outside while fluffier on inside (so god damn good).
Two features of Saigon helped create this texture:
▫️Climate: The heat and humidity in Southeast Asia leads dough to ferment faster, which creates air pockets in bread (light and fluffy).
▫️Ingredient: Wide availability of rice meant locals added rice flour to wheat flour imports (which were quite expensive). Rice flour is more resistant to moisture and creates a drier, crispier crust.
Fast forward to the 1930s: the French-designed street layout is largely complete. Now, the city centre has wide boulevards intersected by countless narrow alleyways.
The design was ideal for street vendor carts. These businesses were inspired by shophosue of colonial architecture to sell all types of goods as chaotic traffic rushed by.
Vietnam has some of the most slapping rice and soup dishes, but many people on the move in the mornings wanted something more portable and edible by hand.
Bánh mì was traditionally upper class fare but it met the need for on-the-go food.
Just fill the bread with some Vietnamese ingredients (braised pork, pickled vegetable, Vietnamese coriander, chilies) along with French goodies (pate).
Pair it with cà phê sữa đá (aka coffee with condensed milk aka caffeinated crack) and you’re laughing.
Haven’t lived in Saigon for 10+ years but ate a banh mi every other day when I did.
While there, I also sold a comedy script to Fox (pitch: “The Fugitive meets Harold & Kumar set in Southeast Asia”).
reminder that no “asian guy and stripper” story will ever top Enron Lou Pai’s “asian guy and stripper” story
Totally forgot Lou Pai got the stripper pregnant.
If this story was transplanted to 2020s, Pai would probably have been a whale on OnlyFans and gotten got…anyways, I wrote about the economics of OF here: readtrung.com/p/onlyfans-sti…
Boston Consulting Group (BCG) trained an AI slideshow maker called “Decker” on 900 templates and apparently gotten so popular that “some of its consultants are fretting about job security.”
Sorry, called “Deckster”. That excerpt was from this BI piece that also looked at McKinsey and Deloitte AI uses: businessinsider.com/consulting-ai-…
The Mckinsey chatbot is used by 70% of firm but same anonymous job board said it’s "functional enough" and best for "very low stakes issues." x.com/bearlyai/statu…
Here’s a r/consulting thread based on Computer World last year. Deckster was launched internally March 2024…some think it’s BS…some think it helps with cold start (B- quality): reddit.com/r/consulting/s…