What happens to Instacart in the Amazon-Whole Foods deal?

Spencer Selvidge for KUT

Spencer Selvidge for KUT

E-commerce giant Amazon announced today that it will be acquiring supermarket chain Whole Foods for US$27 per share, or approximately US$13.7 billion in cash.

"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy", Amazon CEO Jeff Bezos said in a statement.

The online retailer launched a grocery delivery and pickup service, AmazonFresh, in the US about a decade ago and started selling non-perishable food items to Canadians in 2013.

The deal could be "transformative", Moody's lead retail analyst Charlie O'Shea said, "not just for food retail, but for retail in general".

"Assuming the deal passes regulatory muster, the near future of Whole Foods shopping could well involve never walking down a single aisle", Alba wrote. Spokesperson Mike Berman said Amazon's deep pockets might create more opportunities to invest throughout the region. The Bermuda-based company said the Department of Justice is conducting both a civil and criminal investigation into its accounting practices and the way it changes the US government. It does well if you live in the right place.

"You have a company that is taking over another very good company and revitalizing it, demanding that they rethink everything that they do with the consumer in mind and with efficiency in mind", he said. "It's a bit unsettling".

Sales of Whole Foods stores that have been opened at least a year fell 2.5% in 2016. "I'm aging, and I was in there and I was surprised how many people were bent over with age".

"As Amazon enters the grocery market proper, it will put a lot more pressure on existing grocers", he said. But Whole Foods has lost market share to rivals Kroger Co (KR.N), Wal-Mart Stores Inc (WMT.N), Costco Wholesale Corp (COST.O) and others that have elbowed into the natural and organic segment Whole Foods pioneered. Stocks for companies like Wal-Mart, Target and Kroger dipped on Friday morning.

Amazon has already opened a convenience store that does not need cashiers, a grocery store concept that acts as a hub for home deliveries, and a small bookstore that brings its popular customer reviews to brick & mortar.

"This just gives them more options, and that's what consumers want".

Pachter said that even if Amazon gets 20 million members of its Prime loyalty program to pay $15 a month extra for AmazonFresh grocery-delivery service, that's 20 million not going to traditional supermarkets.

"Meat will still come from animals raised with no-added growth hormones, ever". With sales falling, Whole Foods replaces almost half its board members Why do snack companies always change their packaging?

Will we see Amazon Go, the line-avoiding service that lets you buy your groceries by walking out of the store without actually physically scanning each product like every store makes you do? It could have built up its groceries business without acquisitions, said Neil Saunders, managing director of GlobalData Retail, but that would have been costly and time-consuming.

Defense contractor Booz Allen Hamilton tumbled after it said the Department of Justice is investigating its accounting practices and the way it charges the usa government.

"Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades", he said.

The $13.7 billion deal heightens a years-long battle between Amazon, the Internet darling, and powerhouse merchants such as Walmart, which recently beefed up its online operations with a $3.3 billion purchase of an Amazon competitor.

Altre Notizie