Re:Amazon to Acquire Whole Foods for $13.7B
by adventured on Friday June 16, 2017 @09:40AM
(#14568820)
No they didn't.
They just bought a higher income grocery business, which they were aggressively seeking to dive deeper into. They'll use the locations for pick-up & delivery points plausibly and they'll bind it to Prime in various ways. They'll probably also leverage Whole Foods into smaller, smart / automated stores, micro whole foods stores in the image they've been experimenting with for self-shopping.
It would have cost them billions to build out the grocery distribution points they were planning to do anyway. They'll save a lot on that cost, and meanwhile the Whole Foods business is generating $500m per year in net income consistently, over ten years it'll plausibly nicely chop into that purchase price and or fund Amazon's experiments.
They just bought a higher income grocery business, which they were aggressively seeking to dive deeper into. They'll use the locations for pick-up & delivery points plausibly and they'll bind it to Prime in various ways. They'll probably also leverage Whole Foods into smaller, smart / automated stores, micro whole foods stores in the image they've been experimenting with for self-shopping.
It would have cost them billions to build out the grocery distribution points they were planning to do anyway. They'll save a lot on that cost, and meanwhile the Whole Foods business is generating $500m per year in net income consistently, over ten years it'll plausibly nicely chop into that purchase price and or fund Amazon's experiments.