InvestorsHub Logo

Elroy Jetson

07/20/17 1:03 PM

#74690 RE: dexprs #74689

If it's not Amazon it will be a different online retailer moving into all other categories. The costs of selling online with a robot warehouse are simply tremendously lower.

Fresh food and meal kits is really the last market segment Amazon hadn't moved into. Meal kit stocks like Blue Apron have tumbled because they ship from only a few warehouses and are no match for Amazon suddenly combined with the distribution network of Whole Foods.

Perishable food needs more local warehouses and many refrigerated distribution locations, and that's what Whole Foods provides them. I'm sure I'll have the option of having my food delivered by Amazon Fresh or ready for pickup at the local Whole Foods, after my order is assembled in the warehouse and shipped complete to the local store.

The Justice Dept can't stop the the purchase of Whole Foods by Amazon because their current market share of this sector is essentially zero. So there's no resulting anti-competitive result from one company owning too much of the grocery market. If Whole Foods make Amazon a monopoly, that means Whole Foods is already a monopoly which needs to be broken-up.

Incidentally we bought our refrigerator and toilet on Amazon because their price was far below that of local retailers. I paid for a subscription to "Consumers Reports" to decide on which product to purchase rather than pay a higher price to listen to the spiel of a local salesman on a showroom floor.

This is the way of the future and there's no stopping it. But 'tax reform' with a Border Adjusted Corporate Income Tax will certainly speed up this transition.