Key Takeaways
- As one of the world’s most powerful companies, Amazon has extended its reach far beyond e-commerce, diversifying into different industries through strategic acquisitions.
- Amazon owns different subsidiaries such as Amazon Web Services, Whole Foods Market, Twitch, and Zoox, showcasing its ability to innovate across diverse fields.
- Acquisitions like PillPack revolutionize medication management, while Ring integrates smart home technology with Amazon’s ecosystem.
- Through ventures like Project Kuiper, Amazon aims to provide global satellite internet, while Zoox’s self-driving technology positions it to disrupt transportation and logistics.
It’s 2024 and Amazon is no longer just an e-commerce platform. Today, it’s one of the most influential companies in the world, shaping industries and redefining consumer experiences. Founded by Jeff Bezos in 1994, Amazon began as a humble online bookstore but has since grown into a global juggernaut with a market capitalization exceeding $2.3 trillion. Under CEO Andy Jassy, Amazon continues to dominate not only in retail but also in technology, logistics, and even entertainment.
In recent years, Bezos has also shown his influence in political spheres, including a $1 million donation to Donald Trump’s inaugural fund and high-profile meetings with world leaders. With its vast data troves and immense resources, Amazon’s reach extends far beyond online shopping. The company has made multiple acquisitions, allowing it to expand into new sectors such as cloud computing, AI, healthcare, and others.
In this article, we’ll dive into seven of its most interesting subsidiaries, highlighting the company’s incredible diversity and ambition.
7 Amazon Subsidiaries (AMZN)
Amazon’s acquisitions span a wide range of industries, from cloud computing to healthcare. Below, we delve into these subsidiaries in chronological order of acquisition to better understand Amazon’s strategic growth.
| Name | Founded | Founder | Industry | Acquired Year |
|---|---|---|---|---|
| Amazon Web Services (AWS) | 2006 | Amazon | Cloud Computing | N/A |
| Twitch | 2011 | Justin Kan, Emmett Shear | Live Streaming/Gaming | 2014 |
| Whole Foods Market | 1980 | John Mackey, Renee Lawson Hardy, Mark Skiles, Craig Weller | Grocery/Retail | 2017 |
| Ring | 2013 | Jamie Siminoff | Smart Home Technology | 2018 |
| PillPack | 2013 | TJ Parker, Elliot Cohen | Healthcare/Pharmaceuticals | 2018 |
| Zoox | 2014 | Tim Kentley-Klay, Jesse Levinson | Autonomous Vehicles | 2020 |
| Kuiper Systems | 2019 | Amazon | Satellite Internet | N/A |
1. Amazon Web Services (AWS)
- Founded: 2006
- Founder: Amazon (in-house development)
- Industry: Cloud Computing
- Acquired: N/A (internally developed)
Amazon Web Services is Amazon’s crown jewel and its most profitable division, revolutionizing the way businesses access cloud computing resources. Initially developed to improve Amazon’s scalability, AWS now powers a significant portion of the internet, providing infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) solutions to companies around the globe. In fact, AWS’ market share in 2024 reached more than 50%.
AWS generated around $90 billion in revenue in 2023, making it the backbone of Amazon’s operations. In 2024, the company expects $110 billion in annualized revenue. Major AWS clients include Netflix, NASA, and even government agencies like the CIA.
AWS offers everything from storage solutions to machine learning capabilities, enabling organizations to scale their operations seamlessly. Its success has positioned Amazon as a leader in the cloud computing industry. Its biggest competitors are the likes of Microsoft Azure and Google Cloud but they’re currently struggling to keep up.
2. Twitch
- Founded: 2011
- Founders: Justin Kan, Emmett Shear
- Industry: Live Streaming/Gaming
- Acquired: 2014
Twitch is the world’s largest platform for (video game) live streaming, boasting over 240 million monthly active users. The service launched in 2011 and it has gone a long way from its humble beginnings. In 2014, Amazon spent $970 million on the acquisition of Twitch marking the company’s entry into the booming gaming and live-streaming markets.
Just a few years later, we saw some of the biggest electronic sports events and Twitch played a major role in streaming content to audiences worldwide. Consequently, in 2024, it has become a hub for gamers, creators, and viewers alike, offering everything from esports tournaments to live DJ sets and DIY streams.
Furthermore, since the acquisition, Amazon has integrated Twitch into its Prime membership program, offering free monthly subscriptions and exclusive in-game content for members. Today, the platform’s influence extends beyond gaming, with political campaigns and even charity events finding a home on Twitch. Finally, the acquisition demonstrates Amazon’s ability to tap into cultural trends and expand its presence in the entertainment sector.
3. Whole Foods Market
- Founded: 1980
- Founders: John Mackey, Renee Lawson Hardy, Mark Skiles, Craig Weller
- Industry: Grocery/Retail
- Acquired: 2017
Whole Foods Market is a popular American supermarket chain founded in 1980 with over 500 locations spread between the United States, Canada, and the UK. In 2017 Amazon acquired Whole Foods Market for $13.7 billion. This purchase of the chain was Anazon’s largest acquisition to date, signaling a bold move into the grocery industry. Known for its organic and high-quality food offerings, Whole Foods complemented Amazon’s logistical expertise and expanded its physical retail footprint.
In addition, post-acquisition, Amazon introduced numerous innovations, such as cashier-less shopping through Amazon Go technology and Prime member discounts in stores. Whole Foods has also played a crucial role in Amazon’s delivery ecosystem, with many locations doubling as fulfillment centers for grocery deliveries. This acquisition emphasized Amazon’s ability to disrupt traditional industries while enhancing its omnichannel retail strategy.
4. Ring
- Founded: 2013
- Founder: Jamie Siminoff
- Industry: Smart Home Technology
- Acquired: 2018
Founded in 2013, Ring is a company that manufactures smart and home security devices. In 2018, Amazon acquired Ring for over $1 billion solidifying its position in the smart home technology market. Ring specializes in video doorbells and home security systems, making it a perfect fit for Amazon’s Alexa ecosystem.
At the same time, by integrating Ring with Alexa, Amazon created a seamless smart home experience for consumers, allowing them to monitor their homes and control devices with voice commands. However, Ring’s success has not come without controversy. Its partnerships with law enforcement and concerns over data privacy have sparked debates about surveillance and consumer rights.
Despite these challenges, Ring remains a market leader and a cornerstone of Amazon’s growing smart home portfolio.
5. PillPack
- Founded: 2013
- Founders: TJ Parker, Elliot Cohen
- Industry: Healthcare/Pharmaceuticals
- Acquired: 2018
PillPack simplifies medication management by delivering pre-sorted doses directly to customers’ doors, eliminating the need to visit a pharmacy. Five years after it was founded, Amazon bought PillPack for $753 million in 2018, adding it to its growing ecosystem. This also marked Amazon’s first step into healthcare.
Consequently, this move laid the foundation for Amazon Pharmacy, which now allows customers to order prescriptions online and have them delivered through Amazon’s extensive logistics network. PillPack’s integration into Amazon’s ecosystem once again emphasized the company’s ambition to disrupt traditional industries.
6. Zoox
- Founded: 2014
- Founders: Tim Kentley-Klay, Jesse Levinson
- Industry: Autonomous Vehicles
- Acquired: 2020
Zoox is a self-driving electric vehicle startup founded in 2014. It aims to reinvent personal transportation with fully autonomous vehicles, catering not to drivers but to riders. In other words, Zoox is developing purpose-built autonomous vehicles designed for ride-hailing services and urban mobility. Amazon bought Zoox for $1.2 billion in 2020, representing the company’s bold vision for the future of transportation and logistics.
While Zoox has yet to launch commercially, its technology could eventually transform Amazon’s delivery network, reducing costs and improving efficiency. So far, Zoox has shown a prototype for a driverless taxi that could change urban mobility. Lastly, with the acquisition of Zoox, Amazon has turned into a competitor to companies like Tesla and Waymo in the race for autonomous vehicle dominance.
7. Kuiper Systems
- Founded: 2019
- Founder: Amazon (in-house development)
- Industry: Satellite Internet
- Acquired: N/A (internally developed)
Project Kuiper is Amazon’s ambitious plan to provide global broadband internet through a constellation of low-Earth orbit satellites. Furthermore, with over 3,200 satellites planned, Kuiper aims to compete directly with SpaceX’s Starlink by offering affordable internet access in rural areas.
In addition, Kuiper has the potential to revolutionize industries ranging from education to telemedicine by bridging the digital divide. While still in its early stages, the project reflects Amazon’s commitment to innovation and its ability to take on massive challenges.
Why Does Amazon’s Portfolio Matter?
Amazon’s subsidiaries demonstrate its ability to identify growth opportunities and disrupt industries. From pioneering cloud computing with AWS to reinventing grocery shopping with Whole Foods, Amazon’s influence spans far beyond e-commerce. These acquisitions also highlight its commitment to innovation, as seen in projects like Zoox and Kuiper Systems. The company’s diverse portfolio ensures that it remains resilient during market fluctuations.
Closing Thoughts
Amazon’s acquisitions reveal a company that is constantly evolving and expanding its reach. Each subsidiary, whether in technology, retail, or healthcare, reflects Amazon’s ambition to dominate multiple industries and improve consumer experiences.
FAQ
Why does Amazon acquire so many companies?
Amazon’s acquisitions align with its long-term strategy of diversifying its business and gaining a competitive edge in various industries. By acquiring companies like Twitch, Whole Foods, and Zoox, Amazon strengthens its presence in different sectors such as gaming, grocery, and autonomous transportation.
What is Amazon’s most successful subsidiary?
Amazon Web Services (AWS) is widely considered Amazon’s most successful subsidiary. As the market leader in cloud computing, AWS generates significant revenue for Amazon, contributing $90 billion in 2023 alone. Its vast range of services supports businesses worldwide, including Netflix, NASA, and Airbnb.
How does Amazon ensure integration with its subsidiaries?
Amazon integrates its subsidiaries into its ecosystem by leveraging its resources and technological infrastructure. For example, Ring and Alexa are integrated to enhance the smart home experience, while Whole Foods benefits from Prime’s delivery network.
