For years, Whole Foods CEO John Mackey was convinced that grocery stores and e-commerce didn’t mix. And I was more surprised than most when the news broke last week that he’s selling Whole Foods to Amazon for $13.7 billion.
Amazon, Trader Joe’s, and Wal-Mart are, at least experimenting with grocery delivery.
From an economic prospective, the grocery business is loaded with friction. Once a week or more, shoppers must drive to stores, traipse through aisles hunting for what they want, and stand in lines — a gigantic, continual waste of time, patience, and gasoline. Grocers, which stand between food producers and consumers, must maintain chains of stores dotted across a geographical region or across the country, and each store must be serviced by a complex logistical and transportation infrastructure. If any industry is ripe for disruption by online shopping, it should be the grocery business.
Amazon was not content with unveiling its Amazon Fire TV set-top box earlier this week, they casually dropped a new gadget into the tech realm Friday — the Amazon Dash. (Video)
Webvan, the online grocery start-up, may have been the single most expensive flame-out of the dot-com era, blowing through more than $800 million in venture capital and IPO proceeds in just over three years before shutting its doors in 2001.
High levels of bacteria in meat commonly found on grocery store shelves have been found by researchers. According to a study released on Friday, more than half of the bacteria is resistant to multiple types of antibiotics.