Amazon's next target should be Grubhub-and here's why, says top analyst
Amazon's next target should be Grubhub-and here's why, says top analyst
Amazon said to be planning price cuts at Whole Foods
22 Giugno, 2017, 13:50
"What happens when a machine bruises a piece of fruit and a customer is dissatisfied?"
Online shopping has been taking over the retail sector for some time, but the recent announcement that online shopping giant Amazon has bought U.S. specialty grocery store Whole Foods still came as a shock.
Kantor noted that Amazon's market cap gain roughly equaled the amount the company is paying for Whole Foods.
Some workers at the nonunion grocery chain wondered whether Amazon, known for its hard-driving culture, would mean big changes to their pay, benefits or employment. The service, which is offered to the company's subscription Prime members for a monthly fee of $14.99, is available only in about 20 US cities.
"Most importantly, FutureProof's solution is available now while Amazon's Whole Foods deal isn't expected to close until next year", CEO Will Hogben says.
"We will be joining a company that's visionary", Mackey said. Amazon invested in refrigerated distribution centers to hold items. Amazon shares rose as much 3 percent and were still up 0.6 percent at $993.17.
"This puts massive pressure on Walmart to have Jet fulfill grocery out of Walmart stores, but they need drivers to do this", Deliv CEO Daphne Carmel said in an email to Retail Dive.
A source familiar with the matter say Amazon may roll out some (possibly extreme) cost-cutting measures to lower prices across the board at Whole Foods.
To try to compete with Amazon - which has become a go-to destination online for a range of products - other chains may look outside themselves to build up their operations.
The analysts pointed out that while there remains a fear of Amazon entering the United Kingdom, the food retail sector is likely to remain depressed. "I think that where Amazon may add the most value is to speed up the process of perfecting the 365 by Whole Foods model and scaling it quickly thanks to its greater resources".
Whole Foods also might draw a rival offer from one or more large private-equity firms because "there's a tidal wave of money that's sloshing around" in that industry, said Eric Schiffer, chief executive of the Patriarch Organization, a private-equity firm that isn't involved with Whole Foods. We're growing our business with UPS.
We hope you're listening, Bezos. Retail experts also told the Wall Street Journal that Amazon and Whole Foods are likely to gather data from customers both online and in-store to figure out what kinds of goods they should stock in stores, and even how they should be displayed.
"Grubhub is the nation's leading online and mobile food-ordering company, and we're focused on innovating to make it easy for millions of diners to order from the broadest, best set of restaurants", she wrote in an email.
"Without a doubt, this is utterly fantastic", Mackey said according to a transcript that was disclosed to the public on Monday.
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