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Amazon's Whole Food Purchase Raises Demand for Same-Day Grocery Delivery
Services

Amazon's acquisition of Whole Foods was met with wariness and a
not-so-unexpected round of hostility from rival supermarket chains. There
was little doubt that the company's foray into grocery retail would have
made a big impact on the industry. What's surprising, is how the buyout is
also opening doors for suppliers and grocery-delivery startups like
Instacart and Shipt.

It didn't take long for Amazon's $13.7 billion deal with Whole Foods to
disrupt the grocery retail industry. The first and most obvious impact was
the pressure that supermarkets like Kroger felt when Amazon began lowering
prices at Whole Foods. However, after having its shares rattled by Amazon,
Kroger was able to regain investor confidence by partnering with Instacart
and several other grocery delivery services, allowing it to outpace Amazon
over the past three months.

Corporations like Target and Walmart also hurried to hammer out deals of
their own. In fact, Target announced on Wednesday, that it would acquire
Shipt for $550 million. The delivery startup already saw a 60% upsurge in
orders since Amazon's Whole Foods takeover in June. It's now expanding its
reach from 30 U.S. markets since 2016 to 70 before year's end

======================================================================

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Instacart, a company that had described itself as the American grocer's
ally against Amazon, admittedly had a challenging time pushing its service
before Whole Foods was purchased. But according to Instacart CEO Apoorva
Mehta, that all changed after Amazon's acquisition, as retailers started
calling them insisting that they launch in as many stores as possible. Now
they have 165 retailers, a far cry from last year's 30.

Independent retailers are also seeing an upside to the Whole Foods deal.
The rising interest in local food and the fears local producers have over
losing their market to Amazon could force small and independent retailers
to develop systems that allow for a mix of different products.

The Good Food Merchants Collaborative, a group of around 22 independent
groceries, is planning to roll out a cooperative buying system that will
offer competitive prices for consumers and help expand the buying power of
small retailers. To that end, these small grocers are hoping to tap into
local food producers, since they have stronger ties to the community and
consumers. It's an interesting gamble, and one that could have a big
payoff. Research has shown that consumers are also looking to independent
grocers for local food.

======================================================================
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<p class="h1"><a
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style="color: #333333; text-decoration: none;">Amazon's Whole Food Purchase
Raises Demand for Same-Day Grocery Delivery Services</a></p>
<p>Amazon's acquisition of Whole Foods was met with wariness and a
not-so-unexpected round of hostility from rival supermarket chains. There
was little doubt that the company's foray into grocery retail would have
made a big impact on the industry. What's surprising, is how the buyout is
also opening doors for suppliers and grocery-delivery startups like
Instacart and Shipt.</p>
<p>It didn't take long for Amazon's $13.7 billion deal with Whole Foods to
disrupt the grocery retail industry. The first and most obvious impact was
the pressure that supermarkets like Kroger felt when Amazon began lowering
prices at Whole Foods. However, after having its shares rattled by Amazon,
Kroger was able to regain investor confidence by partnering with Instacart
and several other grocery delivery services, allowing it to outpace Amazon
over the past three months.</p>
<p>Corporations like Target and Walmart also hurried to hammer out deals of
their own. In fact, Target announced on Wednesday, that it would acquire
Shipt for $550 million. The delivery startup already saw a 60% upsurge in
orders since Amazon's Whole Foods takeover in June. It's now expanding its
reach from 30 U.S. markets since 2016 to 70 before year's end</p>
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<p>Instacart, a company that had described itself as the American grocer's
ally against Amazon, admittedly had a challenging time pushing its service
before Whole Foods was purchased. But according to Instacart CEO Apoorva
Mehta, that all changed after Amazon's acquisition, as retailers started
calling them insisting that they launch in as many stores as possible. Now
they have 165 retailers, a far cry from last year's 30.</p>
<p>Independent retailers are also seeing an upside to the Whole Foods deal.
The rising interest in local food and the fears local producers have over
losing their market to Amazon could force small and independent retailers
to develop systems that allow for a mix of different products.</p>
<p>The Good Food Merchants Collaborative, a group of around 22 independent
groceries, is planning to roll out a cooperative buying system that will
offer competitive prices for consumers and help expand the buying power of
small retailers. To that end, these small grocers are hoping to tap into
local food producers, since they have stronger ties to the community and
consumers. It's an interesting gamble, and one that could have a big
payoff. Research has shown that consumers are also looking to independent
grocers for local food.</p>
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