Amazon’s supermarket ventures have cost billions of dollars but have yielded no logical plan.
According to Numerator, Amazon.com and Whole Foods accounted for 2.4 percent of the grocery market in the past year.
“It’s almost like the supermarket business is an expensive hobby,” said Longbow Asset Management CEO Jake Dollarhide.
Over the last three decades, Amazon has mastered the art of delivering anything imaginable to your doorstep quickly and affordably. It was one of the greatest corporate achievements ever.
Although Amazon dominates e-commerce, one huge area has proven particularly difficult: grocer
With Prime Now, Fresh, Go, and others, Amazon is attempting to become a major player in the $750 billion US food business. In 2017, it paid $13.7 billion for Whole Foods, more than ten times what Amazon had paid previously.
It’s still a niche player. According to Numerator, Amazon.com and Whole Foods accounted for 2.4 percent of the grocery market in the past year, while Walmart held 18 percent. According to those familiar with the company’s strategy, Amazon’s delivery services have failed to differentiate themselves from competitors.