Why Amazon is buying Whole Foods

A great article by DEREK THOMPSON

It is right on target about the reasons– they are supply chain reasons.  Amazon covets the urban locations to speed up deliveries; but it would be fantastically complex to procure and engineer these one at a time.  With the Whole Foods locations, they now have drop-off points for overnight delivery, and mini-warehouses for food items, especially those that need ‘fresh’ or ‘frozen’ treatment. $14 billion is cheap in terms of accessibility to a population, say within a circle of a given radius.

Perhaps we should rate warehouses and depots by a distribution of the number of customers in a unit of area.

  The retailer’s $14 billion bet isn’t just about the future of food. It’s about becoming the one-stop shop for your entire life.

Source: Why Amazon Bought Whole Foods – The Atlantic

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