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This is Why Amazon Bought Whole Foods

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This is Why Amazon Bought Whole Foods

(Seattle)

One thing is obvious, one not at all. The obvious part is that Amazon CEO Jeff Bezos has a masterplan for his grocery store efforts. The less obvious part is what that plan is, which makes sense given the very competitive grocery landscape. Barron's has published an article seeking to explain the acquisition of Whole Foods based on its own apparently extensive research. The result of the work-buying Whole Foods gives Amazon a physical location within one hour's drive of over 70% of the US population. With its existing prowess in delivery and its growing efforts in on-demand instant delivery, the Whole Foods acquisition gives Amazon a network of fulfilment centers that can service the majority of the US population.

FINSUM : The acquisition is starting to make a lot of sense now, as it simultaneously allows Amazon an entrance into the grocery business, but also gives them fulfilment centers for their core retail business.

  • Amazon
  • whole foods
  • groceries
  • delivery

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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