Drew
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Drew in Just my thoughts,

​Please Stop Saying Alibaba and Amazon Are Identical

Alibaba (NYSE: BABA) was the talk of Wall Street after it's record breaking IPO. Now, all the media wants to talk about is how Alibaba is the Amazon (NASDAQ: AMZN) of China. It makes for a convenient narrative, but it’s simply not true. They are companies with completely different business models. It’s like saying AirbnB is a version of United Airlines because they both facilitate travel.

“Alibaba is not an e-commerce company.” That’s an emphatic statement from Jack Ma, Alibaba’s CEO, which should put the comparisons to rest. While Amazon owns what it sells, Alibaba does not. They merely facilitate between buyers and sellers.

That being the case, you’re crazy if you think that these companies won’t go head to head at some point. They are both too big too avoid it.

It should be entertaining to watch. As an Amazon power user and fan of the company, I personally can’t see anyone dethroning them anytime soon. I mean, will Alibaba be able to send me toilet paper BY DRONE if I run out? I doubt it. Amazon will probably be able to do that through a blizzard, in the near future. They are a juggernaut.

But, that’s probably how stockholders of Xerox (NYSE: XRX) felt in the early nineties, right before Microsoft (NASDAQ: MSFT) absolutely obliterated them. Supporters of one of these companies will be on the wrong side of history. It’s going to be fascinating to see it play out.