Amazon.com, Inc. (NASDAQ:AMZN) has finally abandoned a plan to establish its second headquarters in New York because of political opposition. According to a report in Wall Street, Amazon is offered incentives of over a billion than the amount agreed in the MOU.
Offered incentives of over $800 million
Amazon is offered incentives of more than $800 million than the amount specified in the MOU signed in the year 2018. The company could have benefited from tax credits of $1.2 billion besides construction costs of $500 million. Amazon could also enjoy additional incentives of $1.3 billion from New York City for relocating. Other sites proposed for its headquarters are the Governor’s Island and the World Trade Center.
Amazon abandons the deal
Amazon finally gave up the deal amid political opposition. Reps such as Alexandria Ocasio Cortez have opposed establishing the second campus. The incentives and tax credits worth $3 billion offered to Amazon could be spent elsewhere and blamed the company for seeking the tax breaks.
Becomes a sales channel for Future Retail
Amazon signed a deal to become a sales channel for Future Retail, an Indian e-commerce giant. Future Retail currently operates over 1,500 stores nationwide. As per the terms of the deal, Future Retail will list its products on Amazon Prime and qualify for two-hour delivery in Hyderabad, Bengaluru, Mumbai, and Delhi. The company will use the deal to sell apparel, general merchandise, grocery, and beauty products. Amazon acquired a stake of 3.6% in Future Retail.
Brings Fire TV to the automotive market
Amazon entered a pact with VOXX International Corporation’s subsidiary – VOXX Automotive Corp, to bring the Fire TV of Amazon to the automotive market. VOXX Automotive is engaged in offering innovative solutions to the automotive aftermarket and the international OEMs. Through its arrangement with Amazon, VOXX Automotive is working to deliver services and solutions and expedite the Fire TV development cycle for the automakers.
VOXX Automotive also signed supply accords with prominent automakers worldwide to combine Fire TV into the vehicle programs of OEMs in 2021. President of VOXX Automotive, Ed Mas, said the company is working with Amazon to make Fire TV part of the in-vehicle entertainment.