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Amazon Buys Whole Foods?!?

Amazon Buys Whole Foods?!?

A Major Purchase.

 

If you’ve been keeping up with the news you would have likely heard that Amazon is in on buying Whole Foods for $13.7 Billion. If you’re not sure what Whole Foods is, it’s basically an upscale food store that serves healthier foods. Some call it a yuppie food store. It is the place to go for specific health foods and organic foods. Amazon’s purchased it because they wanted to grow their physical store space and Whole Foods has plenty of locations.

Another one of the main reasons that Amazon did this however is because they wanted to push grocery shopping online! Imagine doing all of your grocery shopping in your boxers right at home! This has a lot of potential and seems very interesting. I myself love buying things online for the convenience but for groceries and the like I usually do it at the store for speed and cost. Many times things online when it comes to food are actually *more* expensive except for certain things bought in large bulk. It ends up being pointless to shop online for food in most cases.

Added Convenience?

If they could get the food to be really cheap online and cut down the costs of getting it to you, I believe it would be great! Not only could I order my food easily, but if it could get to me quickly it would completely change the way I would shop. I wonder how they would implement a delivery system if this were to happen on a large scale? Would it be a quick delivery or would you need to wait 24-48 hours to get your food? The possibilities are endless. Imagine telling your children or grandchildren (assuming you’re younger) about how grocery stores used to exist with them simply looking at you wondering what you’re talking about.  I personally buy certain healthier snacks online, but not much more than that.

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There are some concerns that this is a sign of big business taking over. This shouldn’t be a big deal. If a business grows in a free market by offering low prices and creating value for their customers, then that is a good thing. It should push the competition to compete. We used to have video rentals and Blockbuster wanted to merge with Planet Hollywood but antitrust laws wouldn’t allow it. Now video rentals are dead and people enjoy Netflix for much cheaper. If this changed the way people bought their food, this would be a good thing. The only problem is when it is monopolized by government and you’re forced to use it. Then there is no incentive to provide a good service and a low price.

There’s no doubt about the fact that if this succeeds, many brick and mortar businesses will feel the pain. This isn’t a bad thing for society as they will have to find some way to even the odds up and put pressure back on the other competitors. What do you think about this?

 

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