US: Amazon moves into DC and NYC

The world’s largest online retailer plans to spend US$5 billion on the two new developments in Long Island City and Arlington, Virginia, and expects to get more than US$2 billion in tax credits and incentives with plans to apply for more.

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The online retailer’s decision to expand into New York and Arlington, is part of a larger initiative to extend its reach further into grocery, drones, entertainment and defense contracting services reported Bloomberg Government.

“Both for the economic reasons and networking reasons, it’s a very strong influence-peddling strategy,” said Craig Holman, a government affairs lobbyist at the watchdog group Public Citizen. “That’s why they’re here. I don’t think they would be here for any other reason.”

“By locating one of their headquarters in this vicinity, they become a major player [and] a major contributor to the economy here. That becomes a valuable tool for peddling influence,” he said. “Instead of having to fly out from Seattle, they’re here, and they’re networking with everybody.”

Last year, Amazon convinced regulators that its purchase of Whole Foods would be a positive development in the grocery marketplace.