Amazon has once again sparked a bidding war, but this time it is not to purchase a competitor or even to develop the newest technology. No, it is, in fact, a bidding war to find Amazon’s second home. Several cities both in the US and Canada are fighting to for the opportunity to house the second of Amazons HQ’s. As most of us now the first HQ’s are in Seattle, WA but as announced on September 7th is looking for a second home.
Amazon has said it will invest up to $5 billion to construct its new headquarters. Amazon hopes that this new location will house up to 50,000 Amazon staff members and will gradually build up the workforce from there. Jeff Bezos, CEO of Amazon, has even said “We expect HQ2 to be a full equal to our Seattle headquarters,” he even went on to add, “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We're excited to find a second home." This is quite the statement from the CEO of the e-commerce giant, but who am I to question Bezos on anything. He took what was a good idea for buying and selling books and turned it into one of the largest online marketplaces the world has ever seen. Unsurprisingly, cities across North America are jumping at this opportunity. Cities that range from Los Angeles to Toronto, CA and even Hartford plans on making a pitch to lure Amazon to our neck of the woods.
Amazon does have certain criteria that any new home would have to for Amazon to call it home. Some of these requirements include a population north of 1 million, an international airport, and a stable and business-friendly environment. What this is really saying, is that no move will be made without the right incentives. Amazon, like every other rational human, acts off incentives. Key incentives Amazon is looking for in a city is the willingness to offset initial capital outlay and ongoing operational costs. It will be interesting to follow this story and see which city Amazon chooses for its new home. As it pertains to the global economy, it will be interesting to see if Amazon does, in fact, choose a Canadian city for its second home as it will have a tremendous impact on local employment, international business laws, and tax liability. Business Insider has found over 50 cities whose officials have expressed interest in submitting a proposal to Amazon. All bids are due by October 19.