‘How big’s too big?’: Spike raises concerns about Amazon’s reach as the company reportedly pursues another AI acquisition

Amazon is reportedly in talks to acquire AI startup Decart for about $7 billion, while Starbucks has denied that it is buying Chipotle following reports of takeover discussions. The separate developments put two Seattle-based companies’ growth strategies at the center of a conversation between KIRO hosts Ursula Reutin and Spike O’Neill.

Ursula questioned the concentration of businesses under large companies. Spike discussed the appeal of cheaper shopping and defended paying executives who can turn a business around.

“How big’s too big?” Spike asked on “The Gee and Ursula Show” on KIRO Newsradio.

Ursula acknowledged the convenience of Amazon’s growth but questioned its effect on competition.

“When Amazon just keeps growing and growing, yeah, it can make things cheaper and faster in the short term,” Ursula said. “But if every company eventually gets swallowed up by one of a handful of giant companies, that’s not great.”

Spike weighs convenience against supporting local businesses

The reported Amazon talks concern a proposed acquisition, not a completed purchase. The Wall Street Journal reported the discussions, citing people familiar with the matter.

Spike described the tension between wanting to support local businesses and managing his own expenses.

“We as consumers, if I can get it cheaper and faster, why wouldn’t I?” he said. “I’d love to support local businesses, but I’m not in a position in this economy to make the sacrifice of 10% of everything I buy in order to support local businesses.”

Ursula questioned what Amazon’s continued expansion could mean for competitors.

“It’s not healthy, though, I think, for one company to dominate in so many different major growth areas,” she said. “Walmart’s trying to stave off Amazon, and it’s doing real well. I mean, don’t cry tears for Walmart, but it’s becoming a lot harder for smaller businesses and startups to compete.”

Spike returned to competition as a principle.

“Competition is what makes America great. That’s what makes the free market what it is,” he said. “That’s why there are antitrust laws in place to keep two companies from owning everything.”

Starbucks denies buying Chipotle

Starbucks said Oct. 12 that it was not buying Chipotle. The denial followed an Oct. 8 Financial Times report that Starbucks had worked with advisers on a possible takeover proposal. Starbucks CEO Brian Niccol previously led Chipotle for six years.

The discussion shifted from the proposed deal to Niccol’s leadership and whether effective CEOs justify large compensation packages.

“Your question about whether good CEOs are worth it? Absolutely,” Spike said. “You pay the guy who’s going to save the business, and you give him whatever it takes to get him in the door.”

Ursula agreed with that assessment.

“Clearly, this guy knows how to turn around a restaurant brand,” she said.

Spike favors returning Starbucks to its roots

Spike described what he wants from the Starbucks experience, contrasting a place to spend time with a quick transaction.

“With Starbucks, it’s a matter of going back to basics,” he said. “He wants you to have a comfy chair, log into the Wi-Fi, stay a while.”

Ursula acknowledged that workers may view the changes differently.

“Seems to be working. Although I know union employees at certain stores are not so sure about this whole situation,” she said.

Watch the full discussion in the video above.

Listen to Gee and Ursula on “The Gee and Ursula Show” weekday mornings from 9 am to 12 pm on KIRO Newsradio.