Is REI owned by Amazon?
No, REI is not owned by Amazon. Recreational Equipment, Inc. (REI) operates as a consumer co-op, a distinct business model where the organization is owned by its active members rather than external shareholders or another corporation like Amazon.
Understanding REI's Unique Ownership
REI stands apart from many traditional retail companies due to its cooperative structure. Instead of being privately held or publicly traded with external investors, REI is built on a foundation of member ownership and democratic governance.
- Member-Owned: The co-op is owned by its active members, who often pay a one-time fee to join. These members collectively own the business, making them stakeholders in its success and mission.
- Member-Governed: The overall direction and governance of REI are overseen by a board of directors. Crucially, these directors are elected by the members themselves, ensuring that the company's decisions align with the interests and values of its member base.
This cooperative model contrasts sharply with the ownership structure of a large tech and retail conglomerate such as Amazon, which is a publicly traded company primarily owned by its shareholders, whose primary goal is typically to maximize profit.
Key Characteristics of a Consumer Co-op like REI
Understanding the differences in business models can clarify why REI's ownership is distinct from that of a company like Amazon.
| Feature | REI Co-op | Typical Publicly Traded Company (e.g., Amazon) |
|---|---|---|
| Primary Ownership | Active members | Public shareholders |
| Governance Structure | Board elected by members | Board elected by shareholders |
| Core Mission/Goal | Serve members' needs, promote outdoor activities | Maximize shareholder profit and market value |
| Profit Distribution | Reinvested into the co-op, member dividends | Shareholder dividends, stock appreciation |
Being a consumer co-op allows REI to prioritize its mission of connecting people with the outdoors, fostering community, and focusing on long-term sustainability rather than solely aiming for external shareholder returns. For more information about REI's structure and mission, you can visit their official website at www.rei.com.
