Amazon.com is accelerating its push into food retail, introducing same-day grocery delivery to roughly 1,000 U.S. cities and cutting the free-delivery threshold for Prime members to $25. The initiative broadens the reach of Amazon Fresh and marks one of the company’s most aggressive moves yet to capture a larger share of the $1.5 trillion U.S. grocery market. A recent pricing analysis shows Amazon’s online grocery baskets averaging just 1% more than Walmart’s and 5% to 13% less than comparable orders at Albertsons, Kroger and Target. The combination of lower prices and faster fulfilment positions the Seattle-based retailer to win customers who have so far relied on regional supermarket chains or third-party delivery platforms. The competitive threat was underscored on Thursday when Wedbush Securities downgraded Instacart to Underperform, slicing its 12-month price target to $42 from $55. The brokerage said Amazon’s wider footprint and improving margins heighten the risk that the delivery app will cede market share and face additional pressure on profitability.
$AMZN getting dangerously close to "down on the year" (again) but, yeah, grocery delivery.... https://t.co/0Phk9jHn7L
Heard on the Street: Amazon might have cracked the code for the online-grocery business—but its competitors have strengths of their own https://t.co/Rtd50PltIJ It will take a lot of investment to build this out as large as WalMart. $AMZN $WMT
interesting... $AMZN there's a chance $AMZN turns their internal logistics business into a FedEx / UPS competitor, the same way they turned their internal cloud biz (AWS) into a dominant cloud competitor. Could unlock some serious share holder value. https://t.co/3hf4VEcqBk