Amazon May Launch a Local Services Marketplace

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Former Staff Writer
2 min read

Traditionally known as a finished goods retailer of media, apparel, furniture and food, Amazon is now putting the call out to babysitters, handymen and birthday clowns as it prepares -- later this year -- to launch a local services marketplace.

As certain Amazon inventories seem to be shrinking by the minute due to contract disputes with Hachette books and Warner movies, its foray into local services would mark a brand new channel for the e-tailing giant.

The rumored venture -- whose aim would be to connect customers with local providers -- will commence in “a single market,” reports Reuters, before rolling out nationwide. This is similar to the tactic the company took when it debuted its grocery service Amazon Fresh in Seattle before bringing the concept to San Francisco and Los Angeles several years later.

Related: Amazon Will Now Manage Subscription Payments for Startups and Businesses

Entering the services channel, Amazon will place itself squarely in competition with Yelp, Angie’s List, Home Depot and Lowe’s -- all of whom provide links between customers and local services, according to the report.

However, Amazon would reportedly go one step further by aiming to add a service component to every single product sold on its site, per Reuters. Recently, the company tested this model by offering an installation option to users who bought Nest thermostats.

While local services can be an expensive arena because efforts need to be tailored to individual regions, Amazon has reportedly been reaching out directly to service companies in Seattle and San Francisco as well as startups that themselves provide local service marketplaces.

Related: Stephen Colbert Throws Punches at Amazon

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Make sure you’re covered for physical injuries or property damage at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur