Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like?

Bloomberg on the implications of the Whole Foods Amazon deal for the US:

For Amazon, the deal is more about getting a distribution network for groceries, said Michael Pachter, an analyst at Wedbush Securities Inc. It has spent years trying to break into delivering groceries, but hasn’t been as successful as in other categories.

Amazon previously contemplated a takeover of Whole Foods last fall, but it didn’t pursue a deal, a person with knowledge of the situation has said. The e-commerce company revisited the idea after Jana stepped in.

“Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage,” Pachter said. “I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get 5-minute delivery.”

Nicholas Thompson, editor at Wired:

Internationally though, the Whole Foods deal raises the question what Amazon’s grocery strategy outside the US will be like in the future. More, local acquisitions? And, more broadly, how internationally is Amazon seeing itself? As Benedict Evans, industry analyst at VC firm a16z, says:

Needless to say, Whole Foods will be Amazon’s biggest acquisition yet.

More on this topic:

2 comments

  1. […] as said before, buying Whole Foods provides Amazon outside the US with nothing. This is purely a US story, for now. ​ ​More on this topic: ​ ​Post Whole Foods, What Will […]

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  2. […] Post Whole Foods, What Will Amazon’s Grocery Strategy Outside the US Look Like? […]

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