12/10/2019
Amazon has officially entered the legal industry.
It is obvious how Amazon is leveraging its trust equity and its massive reach to allay the pain-points. It is providing an easy way to shop for legal services, in a manner that’s already familiar to brands and the public at large.
There are at least three major economic inconveniences that Amazon is able to immediately eliminate with its IP Accelerator:
(1) Search and information costs: Time and money that a buyer has to spend to look for relevant information and meeting with lawyers before finalizing one.
(2) Bargaining costs: Time and money that a buyer has to spend to agree to fees and scope, accounting for risks and contingencies, and drawing up an engagement.
(3) Policing and enforcement costs: Time and money that a buyer has to spend to ensure that the transaction proceeds as planned and that parties do not default.
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The legal industry has massive latent demand, and few companies in the world are better placed than Amazon to seize it and hurt the incumbents.
Its incursion into the legal territory can be trend-setting.It will not be surprising if global giants soon start including legal services into their “customer happiness” prerogative.
What is Amazon’s thinking behind the launch of its IP Accelerator?
