Just came across this stat from A16Z. They found that AI agents are challenging traditional marketplaces fo…
by Marcel Hollerbach · World of Commerce
Just came across this stat from A16Z. They found that AI agents are challenging traditional marketplaces for control over the customer relationship, leading companies to adopt different strategies based on their current market position and business models.
AI Agent Threat: Marketplaces (like Amazon, DoorDash, and Instacart) earned customer loyalty through reliable fulfillment and user experience. However, AI agents (like Muse, ChatGPT, and Grok Bot) can now intercept customers by comparing options and routing orders, threatening marketplace profit pools.
Amazon's Strategy (Block): Amazon is attempting to block AI integrations. It can afford to do this because its massive selection and established user habits give it leverage; an AI assistant is significantly less useful to a consumer if it cannot shop on Amazon.
Instacart's Strategy (Integrate): Instacart is choosing to integrate with AI agents like Muse. This approach makes sense for them because it opens up a new channel to capture orders from customers who wouldn't normally start their shopping journey on the Instacart app.
Platform Enablers: Infrastructure providers like Shopify, Toast, and Square have strong incentives to integrate with AI. By giving agents access to their merchants, they open new sales channels while continuing to earn their core software and payment revenues (without having to protect a marketplace ad business).
I think whether a company blocks or welcomes these AI channels comes down to leverage and economics. The outcome of these partnerships will depend entirely on how much mutual business each side needs from the other. ...and let's keep in mind that besides pure ecommerce revenues there is also a huge advertising business that the players need to protect.
There used to be a time when the internet was well organized. Google did search. Meta did social and Amazon did Ecommerce. Nowadays everyone is competing with each other. Ultimately I believe this will be good for consumers as it forces everyone to deliver max innovation and not get lazy in their monopoly...