“Too Big to Fail” became applicable to large banks when governments and regulators in US, UK and Europe had to bail out the banks that were tottering on the edge of failure on the back of the credit crisis or “Lehman Crisis” in 2008. Taxpayers bore the brunt of the bailouts.
Today, banks have been swept to a corner by the market, though the “Too Big to Fail” tag still holds. Since 2008, two huge behemoths have emerged in the form of Amazon and Alibaba. Together their combined valuation is over USD 1 trillion.
More importantly their eco system has become an economy by itself with around 13.5 million businesses selling products through these two sites. Millions of online customers buy products through these sites, benefiting from lower costs, more number of products on offer and availability of products from across the world.
Logistics drives these businesses and has given rise to a huge logistics industry that is improving delivery standards and delivery technology (drones for example) every day.
Amazon through its cloud business provides servers for millions of businesses, across all sizes from mega to micro.
And they are expanding rapidly and continuing to grow, widening their eco system.
Amazon & Alibaba are the “Too Big to Fail” entities as any debacle to their businesses can even lead to collapse of growth of economies.