Lyft commits to spending $300 million on Amazon cloud
In the past few years, initial public offerings of tech companies brought a lot of good news for Google (GOOGL). For example, Spotify (SPOT) revealed ahead of its IPO last year that it would spend 365 million euros, or more than $400 million, on Google cloud services over three years. Snap (SNAP) revealed in its IPO filing in 2017 that it would spend $2.0 billion on Google cloud services over five years. Now it looks like Amazon’s (AMZN) turn. Lyft, Uber, and Slack are just some of Amazon’s cloud customers planning to go public this year. And these are the moments when a lot of deals come to light. For example, Lyft has already revealed plans to spend at least $300 million on Amazon cloud services through 2021.
Amazon seeking to defend and expand cloud market share
For Amazon, being selected as a cloud provider for these highflying tech startups could go a long way toward helping it maintain its lead in the cloud. Lyft and Uber are the top ride-hailing providers in the United States and have a huge growth opportunity ahead as they expand overseas.
Amazon exited 2018 as the world’s top cloud computing company with around 35% market share, compared to about 15% for Microsoft (MSFT), according to Synergy Research estimates. Google and Alibaba (BABA) closed the year with around 7.0% and 5.0% market share, respectively. IBM (IBM) and Google are tied with 7.0% global cloud market share.