"On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It's very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big"
About this Quote
The timing matters. This is the language of the post-dot-com shakeout, when capital dried up and a generation of internet companies discovered that growth stories are easy to fund until they suddenly aren't. Bezos is speaking from inside that wreckage. The phrase "financing rug pulled out from under them" is vivid for a reason: it frames failure not simply as bad execution, but as exposure to a brutal funding cycle. That lets him position Amazon less as a lucky winner than as a company disciplined enough to survive long enough to exploit the economics of scale.
There's also a quiet warning embedded here. Small can remain niche. Big can dominate. Medium gets squeezed from both sides: too costly to stay scrappy, too weak to spread those costs across a massive customer base. That's not just analysis; it's an argument for why internet markets tend toward concentration. In retrospect, it reads as both diagnosis and alibi for the age of giants. Bezos isn't merely observing consolidation. He's telling you why it had to happen - and why companies like his deserved to be the ones that made it through.
Quote Details
| Topic | Startup |
|---|---|
| Source | "Online Extra: Q&A with Amazon's Jeff Bezos". Interview with Robert D. Hof, www.bloomberg.com. March 26, 2001. |
| Cite |
Citation Formats
APA Style (7th ed.)
Bezos, Jeff. (2026, March 25). On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It's very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big. FixQuotes. https://fixquotes.com/quotes/on-the-internet-companies-are-scale-businesses-186453/
Chicago Style
Bezos, Jeff. "On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It's very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big." FixQuotes. March 25, 2026. https://fixquotes.com/quotes/on-the-internet-companies-are-scale-businesses-186453/.
MLA Style (9th ed.)
"On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It's very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big." FixQuotes, 25 Mar. 2026, https://fixquotes.com/quotes/on-the-internet-companies-are-scale-businesses-186453/. Accessed 27 Mar. 2026.



