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Some Of The Advantages Of The Amazon-Whole Foods Deal

June 16, 2017: 12:00 AM EST
Amazon has been tiptoeing into the huge consumer grocery business since it launched its AmazonFresh home delivery service in 2006. The acquisition of Whole Foods Market, with its 460 physical stores, accelerates the move, and offers benefits to bother companies. It is probable that the deal will mean Whole Foods’ Instacart delivery service will be replaced with an Amazon version that adapts Prime Now and AmazonFresh. As to pricing, Amazon is also likely to use its scale and efficiencies to help relieve pricing pressure on Whole Foods. And Amazon could also use Whole Foods’ partnerships with suppliers to lure them to the Amazon platform and take advantage of Amazon’s 300 million customer accounts. [ Image credit: © Whole Foods Market  ]
Michelle Grant, "The Implications Amazon’s Acquisition of Whole Foods", Blog entry, Euromonitor International, June 16, 2017, © Euromonitor International
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