Posted by & filed under Amazon, Disintermediation.

The Amazon-fueled grocery price war may have finally arrived.  News that Amazon.com will start offering two-hour delivery from Whole Foods stores in four U.S. cities has the food world buzzing that competition is about to heat up in an industry that survives on razor-thin margins.  In the six months since Amazon acquired the organic grocer, the e-commerce giant has been mum about its plans for its ballyhooed push into brick-and-mortar food retail. Now, the grocery world will get a first-hand look at Amazon’s strategy, with two-hour delivery available through its Prime Now service in Dallas and Austin, Texas; Virginia Beach, Virginia; and Cincinnati, Ohio.

Source: Bloomberg Technology News

Date: February 8th, 2018

Link: https://www.bloomberg.com/news/articles/2018-02-09/amazon-is-turning-these-four-cities-into-grocery-battlegrounds

Discussion

1) If there are such “razor-thin margins” in the grocery business, why is Amazon going after this marketspace?

2) What next for Amazon?

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