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Amazon pours billions into German economy

Amazon operates more than 100 facilities within Germany, with a significant portion of its investments allocated towards online shopping and cloud computing services.

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Amazon Pumps Significant Resources into Germany's Economy
Amazon Pumps Significant Resources into Germany's Economy

Amazon pours billions into German economy

Amazon, the global e-commerce giant, is continuing its expansion in Germany with a focus on AI technology, logistics, and same-day delivery services.

The company's CEO in Germany, Rocco Brauniger, has confirmed that Amazon is prioritizing the 'Same Day Delivery' service, aiming to revolutionize the shopping experience for customers. This move comes as initial tests with advertising customers have already taken place.

Amazon's AI applications are becoming increasingly significant, with the company developing an AI assistant for businesses selling on its marketplace. This assistant can automatically reorder goods, issue commands for storage or price changes, and initiate advertising measures for products. The AI tool is set to appear in Germany in the coming months.

The AI assistant is part of the Creative Studio, which bundles all of Amazon's generative AI tools and will be accessible via the Ads console. Advertising ideas can be developed or adapted at the touch of a button, including scripts, images, videos, and even voice recordings. The aim of the AI assistant is to attract more small and medium-sized businesses to Amazon advertising.

Amazon's investment in Germany is not limited to AI technology. The company has announced investments of over 8.8 billion euros in its infrastructure in the Frankfurt region by 2026. New locations in Horn-Bad Meinberg (NRW), Dummerstorf (Mecklenburg-Vorpommern), and Erfurt (Thuringia) have been built with these investments.

In addition, new logistics centers are planned in Bietigheim (Baden-Württemberg), Köhnern (Saxony-Anhalt), and Rohr (Bavaria). These centers aim to expand same-day delivery and customer proximity. Amazon currently employs around 40,000 people in Germany, an increase of 4,000 from the previous year.

Amazon's investment in Germany has been substantial since 2010, with around 90 billion euros invested so far. The company is planning to invest approximately 14 billion euros in Germany by 2024, an increase of about 2 billion euros compared to 2023. Amazon did not reveal planned expenditures for 2025 and 2026 but confirmed continued strong investment.

The competition authorities are closely monitoring Amazon due to its market power, considering it to have an 'overwhelming' market-wide significance for competition. Despite this, Amazon continues to push boundaries in the online retail market, accounting for approximately 60% of online retail in Germany.

Work on improving services, including speech recognition for Alexa, is being done at Amazon's development sites, such as the one in Aachen. These employees work in various roles such as logistics, sorting, development centers, and other locations.

In conclusion, Amazon's expansion in Germany is multi-faceted, encompassing AI technology, logistics, and same-day delivery services. The company's continued investment in the country is a testament to its commitment to the German market and its customers.

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