This is a headline I could not make up if I tried.
Speaker AAnd Amazon has shut down a recent secret project to develop a fertility tracker.
Speaker AAccording to cnbc, the company had been working to launch a fertility monitoring device and companion smartphone app for the past four years as a project as part of a project codenamed Encore.
Speaker AI guess said people who asked not to be named because they weren't authorized to speak to the press.
Speaker ANo surprise there.
Speaker BOr they didn't like the name of their product.
Speaker BProject like, right, I don't want to write to Project Encore.
Speaker AProject Encore, yes.
Speaker AWell, that even the naming gets even better.
Speaker AAnd because the team sat within Amazon's Grand Challenge, which connotes all kinds of bad things for me, are also known as its special projects division, the sources said.
Speaker AThe project appears to have been a costly endeavor as well, and required significant upfront investments for lab research and development, in addition to the high salaries for scientists and engineers, the sources said, adding that the team's weekly overhead was roughly $1.5 million, which by my counts and is some significant Cheddar.
Speaker AAre you pro or con the idea of an E commerce retailer tracking your fertility?
Speaker BI don't think that's the question to ask.
Speaker BI really don't.
Speaker AOh, really?
Speaker BOkay.
Speaker BI think that everybody is.
Speaker ASo you could be okay with it.
Speaker BYeah, I mean, there's.
Speaker BI give my information to a tracker and it doesn't matter to me if it's Clue or it's Amazon.
Speaker BI don't think that's the story here.
Speaker BI think there, the press and media is using this as an opportunity to kind of freak people out.
Speaker BGiven the current climate of like Amazon's tracking your fertility.
Speaker BWell, there's some benefits to that too.
Speaker BAnd I don't think it's wrong for Amazon to be doing this.
Speaker BI mean, if I can get vitamins or I can get other things, you know, because there's, it's more than fertility that you track in these apps.
Speaker BIt's, how are you doing on sleep, your mood, energy, all these other things.
Speaker BAnd so I think that if you start to look at those things and would it be convenient for me to get vitamins delivered to me in a couple of hours through my Amazon prime membership or other things like there, there could be benefits.
Speaker BSo I don't, I don't think people should be hating on Amazon for trying something like this.
Speaker BWhat I do think we should be paying attention is to.
Speaker BIs the fact that Jassy is really looking closely at where they can curb spending, that Amazon is in a challenging position like A lot of other retailers are right now and they need to start to look at where they can cut costs.
Speaker BAnd unfortunately, as we know, Chris, like, innovation is some of the first places where they can cut some of that spending, especially at the burn rate that you're talking about, you know, one million something a week.
Speaker BI mean, it makes sense that this might get, get tabled for a little while so they can focus on the core business.
Speaker BSo I think that's what's the real headline here.
Speaker BNot whether or not Amazon should be doing a fertility tracking program.
Speaker BBut what, what, what are your thoughts?
Speaker BI mean, what would you do if.
Speaker AYou were so I want to make sure I understood you correctly.
Speaker ASo you're saying that you're a, you're fine with Amazon doing this if they didn't have the budget constraints that they're currently facing given their current financial performance?
Speaker AYou are.
Speaker AWow.
Speaker BOkay, this is not the area where, this is not Amazon's core business right now.
Speaker BThis is the potential down the road to find other areas for generating revenue.
Speaker BSo I don't like the idea.
Speaker BInteresting.
Speaker AAnd that's why I don't like it because I think it's just outside of the core in general.
Speaker AAnd it shows two things to me.
Speaker AOne, it shows to me the, the sheer temerity or hubris that Amazon thinks its success in selling goods via E commerce and cloud data storage allows it to do right, that it can get into fertility tracking.
Speaker ABecause the actual tie ins with Amazon's vaunted flywheel are stretches at best.
Speaker ALike, oh yeah, I can get my vitamin.
Speaker AI can know when to send people their vitamins.
Speaker ALike, I don't, I don't know like that, that's okay, fine, you could always make those connections.
Speaker ABut like, come on, there's more here on this than meets the eye.
Speaker AAnd so I think he's right to pull the plug on this.
Speaker AI think they've gotten their skis too far ahead of them, gotten too far ahead on their skis for many projects like this.
Speaker AAnd so I think it brings them back to the core of like, what really gets Amazon's flywheel working and where do they really have a right to win now with that said, Anne, I'm going to talk out of both sides of my mouth because I will still take discounted Ed drugs and hair loss drugs till the cows come home.
Speaker ALike they announced last week too.
Speaker ASo, so, you know, I don't know, but this just feels different to me.
Speaker AThat feels like core retail and commerce.
Speaker AThis feels like a bridge too far for me.
Speaker ABut I don't know.
Speaker AYou get the last word on this one.
Speaker BSee, I still disagree.
Speaker BI mean, it sounds like they still have one project in this grand challenge portfolio that's still in the healthcare space.
Speaker BAnd I do think, like, again, I think people are focusing too much on the fertility tracker part of this.
Speaker BThere are so many more elements.
Speaker BThere's a flywheel of once someone does get pregnant and they are already in the Amazon universe, you are able to bring them in to start offering them baby gear.
Speaker BYou're starting to, like, get them earlier in on the cycle.
Speaker BI don't think this is any different than, like, some of the stuff they're doing, like right now, the Amazon hall, like the TEMU competitor thing, like, they're trying to find new areas for growth.
Speaker BAnd I don't think that that's a terrible idea to get people attracted to.
Speaker BYou used to checking an app multiple times a day and then being able to transact right within it.
Speaker BSo I.
Speaker BI don't hate it and I think that people are focused a little bit too much on one particular function of it.
Speaker BSo that's where I'll.
Speaker BThat's where I'll leave it.
Speaker BBut fair point.
Speaker AAnd we agree to disagree.
Speaker AAnne.
Speaker BThat's right.
Speaker BThis is a very civilized show that we have friendly today and we're very friendly until we get further into the show.
Speaker BDon't worry, people, we'll be back.
Speaker BYes.