In its first-quarter results, the online retail giant Amazon reported that it lost nearly $4 billion at the beginning of 2022. The company had a net loss of $3.8 billion in the first three months of the year, compared with an $8.1 billion profit in the same period last year.
A statement released by the firm blamed the figures on a $7.6 billion loss from its investment in electric automaker Rivian Automotive – most of which was linked to electric delivery vans.
Additionally, Amazon’s CEO said that part of the loss was down to COVID-19, which had caused unprecedented growth for the company last year. The war in Ukraine has also presented new challenges for the company.
Amazon CEO Andy Jassy said in a statement: “The pandemic and subsequent war in Ukraine have brought unusual growth and challenges. Our Consumer business has grown 23% annually over the past two years. We know how to do this and have done it before.
This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020.”
What are Amazon’s plans for the future?
Despite the disappointing results seen in the last few months, Amazon says that it has a lot of plans for the future and that its customers have plenty to look forward to.
One new benefit that will be introduced is “Buy with Prime”, which will allow US Prime members to extend their Amazon benefits to other online stores.
When shopping at participating online retailers, Prime members will be able to access their Prime benefits, such as free returns and free next-day delivery.
Prime Video will also be adding approximately 4,000 films and 17,000 TV episodes to its streaming library after closing a deal with MGM Studios.