The 8 fiercest rivalries in tech today

Discussion in 'News Feeds' started by Biz Carson, Mar 1, 2016.

  1. Biz Carson

    Biz Carson Guest

    Business Insider

    Competition is good, and there's no shortage of it between tech companies.

    Whether it's fighting over a rocket launch or who is going to win the online video space, tech companies do a great job of disrupting traditional industries and themselves.

    Here are 8 of the most intense rivalries in tech:

    Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

    Rivalry 1, E-commerce — The incumbent: Amazon

    [​IMG]Spencer Platt/Getty Images

    While many e-commerce companies have come and gone, Amazon has remained a stalwart since 1994. The "Everything Store" has made its name for selling just that, everything from books to food to clothes. While many brick-and-mortar stores have an online equivalent, Amazon's online-first presence cemented its dominance in online shopping. That is, until one startup decided to take them on by hitting them where it hurts: pricing.

    The challenger: Jet

    [​IMG]Business Insider

    Meet Jet, an online competitor determined to beat Amazon. The young company launched to much fanfare in 2015 with lower prices than the incumbent. Its bet was to have its members pay a fee, but it soon scrapped that and changed its business model so its products would be cheaper (but not by much less) than Amazon. Its CEO Marc Lore said at the time that the extra 4% to 5% off Amazon's prices was enough to entice buyers when making their orders.

    Damage report: Amazon still has the edge, at least for now.

    [​IMG]Peter Wynn Thompson/AP Images for Amazon

    While Jet has struggled to find a sustainable business plan, Amazon's finances remain strong and don't seem to be impacted by the upstart yet. Don't count Jet out though — the company is well-funded having raised more than $565 million and people love saving money. While an Amazon membership does come loaded with perks like TV and free two-day shipping, Jet's lower cost selection might find its own niche in customers who are looking for a deal, not perks.

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