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Amazon met with startups about investing, then launched competing products

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Re: Amazon met with startups about investing, then launched competing products

#151

"An Amazon spokesman said the company doesn’t use confidential information that companies share with it to build competing products" Maybe...but in the past, AWS proactively looked at traction of products hosted on its platform, built competing products, and then scraped & targeted customer list of those hosted products. In fact, I was on a team in AWS that did exactly that. Why wouldn't their investing arm do the sa…

A clarification: I'm talking about tactics from 2010-2014. I left in 2015.

Re: Amazon met with startups about investing, then launched competing products

#152

"An Amazon spokesman said the company doesn’t use confidential information that companies share with it to build competing products" Maybe...but in the past, AWS proactively looked at traction of products hosted on its platform, built competing products, and then scraped & targeted customer list of those hosted products. In fact, I was on a team in AWS that did exactly that. Why wouldn't their investing arm do the sa…

Just a word of caution regarding the throwaways in this thread. Take them for what they are, anecdotal claims

Re: Amazon met with startups about investing, then launched competing products

#153
Almost every established VC is a potential competitor as much as a potential backer, because they already have backed ventures in/near your market, you won't get approached by one without expertise in your market. Any of their other backed ventures might be mulling over a new strategic goal and doing indirect research on you via their sponsors. Before you say NDA, it's practically unenforceable, you can't stop a VC chatting about what they've seen in confidence to a trusted friend, the bar to prosecute breach is far too high.

You can't stop someone seeing what you offer, and it's hard to prevent competitors from seeing how successful you are, especially giving the lack of privacy in consumer space. In this article, we don't know if Amazon used any IP, we are told they just copied the offering, which anyone is free to try.

I bet the problem with DefinedCrowd is not so much they revealed too much, rather they revealed too little. How so? The VC dance is really about demonstrating to the uncertain backer-competitor that you are so good, it's not worth competing. That's a main point to inviting outside parties in. I imagine these guys were just so weak, they made competition more appealing that partnership.

Re: Amazon met with startups about investing, then launched competing products

#154
post #104

Earlier quoted context omitted.

Just ... wow. This is an egregious abuse of monopoly power and is exactly the kind of thing that antitrust laws are supposed to address. I was certainly naive when I heard about other big retailers who would refuse to allow any subcontractors to use AWS. "Surely Amazon has a Chinese wall" to prevent that kind of data sharing, I thought. Never underestimate the lack of morals in business is the right answer I guess.

Amazon does not access private S3/Ec3 data for retail competitive purposes. The comments above indicating 'well someone has access' - yea, obviously, it's data hosting. Someone has access. But the amount of conspiracy here is frustrating. Amazon will play very aggressively within the bounds of the law, meaning, if they can glean public info about something, or look at their own sales data for a product, they will do…

I dont think its just about playing by the book of law. I'm sure they also consider optics and trust in the brand.

Re: Amazon met with startups about investing, then launched competing products

#155

I bet you Amazon thought of this before that company even formed. That's not an original idea.

For the longest time (more than a decade) I ran a small company ( All that time I thought: next week someone else is going to clue in to this, it is so obvious. But nobody ever did. You can read more about it here: https://jacquesmattheij.com/the-several-million-dollar-bug/ So I totally believe that the seed for the idea came from somewhere else.

And this is why when I recant an answer based on docs or rfc, I use the phrase "X should do Y, but I'd have to verify it by hand"

Re: Amazon met with startups about investing, then launched competing products

#156

Amazon announced a copycat of us pretty quickly after we went through YC. I suspect it’s not some sinister top-down thing (unless they are actually reading all YC company descriptions). Most likely, the copycats are ambitious, unoriginal PMs pitching some budget. We facilitate subscriptions using a smart scale, and it works way better than a Dash button (Bottomless.com, YC W19). I’m actually surprised they haven’t la…

Throwaway to avoid being ID'd. I was on the team that was peripherally involved in building the Amazon Dash collection of products. The scale idea has been floating around within the company since 2015/2016. It takes long to do this at scale and a cost-effective point. There were also other similar products that were scrapped because there was no way we could sell them at a reasonable price.

Interesting! The scale concept is obvious so I thought the timing of actually moving forward with it somewhat suspect. Fascinating intel.

Re: Amazon met with startups about investing, then launched competing products

#157
post #3

As a startup, you ought to protect your ip. Its the job of Amazon to guesstimate your worth. A billionaire will get away with shit, if they can.

Poison pill them. polonium.io is now AWS Polonium. Then get the hell out of dodge.

Another thing you can do is just dump all your problems on them. Send all your freaks to interview there, and file every workplace complaint they can.

Best not to provoke people. Walk away from it eventually. Work for a dollar a year. If you don't they crush you. They crush you anyways, more so if you're a punk.

Re: Amazon met with startups about investing, then launched competing products

#158

"An Amazon spokesman said the company doesn’t use confidential information that companies share with it to build competing products" Maybe...but in the past, AWS proactively looked at traction of products hosted on its platform, built competing products, and then scraped & targeted customer list of those hosted products. In fact, I was on a team in AWS that did exactly that. Why wouldn't their investing arm do the sa…

Cannot up vote this enough. During my time both at Retail and AWS it was perfectly normal to trawl production customer data and come up with ideas to launch competing products. Prices were always set lower or free offering justified as data-driven and customer obsession. I hated the gas lighting their customers and left in disgust of the company and its leadership which encourages that behavior.

This frankly doesn't match my experience and I have to say I find it unlikely.

Before going into our AWS production S3 buckets, looking at our databases for customer lists AWS seems to be pretty careful to get an OK.

Now we are being told that production customer data was normal to trawl? How in the HELL are they passing all their certs with all production data so wide open. I do customer managed keys - I mean, this is a HUGE backdoor.

Either Amazon is lying about AWS security (and has fooled a bunch of others) or routinely trawling AWS customer production workloads for data is a false statement.

Re: Amazon met with startups about investing, then launched competing products

#159

Amazon announced a copycat of us pretty quickly after we went through YC. I suspect it’s not some sinister top-down thing (unless they are actually reading all YC company descriptions). Most likely, the copycats are ambitious, unoriginal PMs pitching some budget. We facilitate subscriptions using a smart scale, and it works way better than a Dash button (Bottomless.com, YC W19). I’m actually surprised they haven’t la…

Of course they’re reading the new startup descriptions. That’s the sort of market research due diligence that’s expected of any PM.

They fly in startups for presentations to get a glimpse into their inner workings, you think they aren’t taking the time to read about what everyone’s doing first?

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