An interesting move by Amazon, will be interesting to see how this pans out.
In the short term, the deal crucially allows Amazon to move into the fresh-food market with a credible fresh food offer quickly, all the while avoiding the potentially huge cost of building a fresh food supply chain platform. While it will probably take some time to build, it will most likely be an effective, credible and deep-pocketed additional market share thorn in the side of the UK incumbents. Given the importance of drop densities, those with greatest exposure to higher population density areas (i.e. Sainsbury, Tesco and Waitrose) will have the most to lose.
I am curious how the demographics of Prime Now customers will mix with Morrison's customers.
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[ 4.2 ms ] story [ 15.3 ms ] threadIn the short term, the deal crucially allows Amazon to move into the fresh-food market with a credible fresh food offer quickly, all the while avoiding the potentially huge cost of building a fresh food supply chain platform. While it will probably take some time to build, it will most likely be an effective, credible and deep-pocketed additional market share thorn in the side of the UK incumbents. Given the importance of drop densities, those with greatest exposure to higher population density areas (i.e. Sainsbury, Tesco and Waitrose) will have the most to lose.
I am curious how the demographics of Prime Now customers will mix with Morrison's customers.