“Amazon didn’t go out and lease, build or rehab millions of square feet of industrial space in order to ramp up its grocery delivery platform,” said Ben Conwell, Cushman & Wakefield (C&W) senior managing director of the Americas in their report, quoted in Forbes. Perhaps the most telling sign of this is Amazon’s push into brick-and-mortar. While Amazon’s purchase of Whole Foods Market is creating concern among e-grocery platforms, brick-and-mortar retailers can breathe a sigh of relief that e-grocery still has a long way to go before brick-and-mortar grocery stores are in danger of becoming obsolete, according to an article in Forbes. For example, despite doubling its revenue to $795.4 million last year, the company still reported a net loss of $54.9 million from money poured into logistics and marketing. However, there was still some initial anxiety among investors regarding Blue Apron’s high marketing costs. Blue Apron co-founder, Matt Salzberg is staying optimistic, saying that if Amazon “can help accelerate bringing online dollars into the offline grocery world and accelerate that transition from offline to online, we think that is good for us, and good for others players in online grocery,” in an interview with CNBC. This is below the start-up’s original valuation of $2 billion.Īmazon’s acquisition of Whole Foods Market has caused some worry among Blue Apron and its stock holders about a such a powerhouse taking a huge step into the grocery delivery industry. According to Business Insider, at this price, Blue Apron stands to raise about $300 million and be valued at $1.9 billion. The acquisition’s first victim appears to be the grocery start-up Blue Apron, which made its debut on the New York Stock Exchange with its IPO at $10 a share, down from 40% from its expected price range of $15 to $17 a share. Now Amazon also has the resources of Whole Foods Market’s 400 plus stores to increase sales. AmazonFresh delivers groceries, prepared foods and fresh ingredients with recipes to customers. Amazon already has some experience in electronic grocery.

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