Amazon’s Imminent Threat To The Crowded Meal-Kit Delivery Field

And that could make a difference for meal-kit services and as well as for broader at-home grocery delivery, Evers says.

Meanwhile, the network of brick-and-mortar Whole Foods stores also gives Amazon an opportunity to offer “order online, pickup in store” options, which tend to drive additional foot traffic in stores and increase sales.

“In terms of its impact on the grocery retail industry, it will force all the major players to reevaluate and step up their online grocery businesses,” Zhang says. The online sector accounts for a small fraction, only about 2%, of total food sales in the U.S.

“In some ways,” Zhang says, “Amazon’s acquisition of Whole Foods brings a needed jolt to the industry and will stimulate other food retailers to think deeply about how to revamp or improve their online and delivery operations to adapt to the changing needs and shopping styles of today’s consumers.”

The key for Blue Apron, as it seeks to hold its ground, Kannan says, will be to iterate, offering more products, more services, more ways to engage with the company.

“The customers who are staying loyal, they should be buying more and spending more,” Kannan says. “That would be one true measure of success.”

 

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