Amazon Continues To Challenge The Grocery Industry

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2017 has been the year for Amazon. Earlier this year, the company merged with WholeFoods Market, which marked their entrance into the health and wellness sphere. Amazon’s next moves appear to be headed in the same direction. AmazonFresh (the online retailer’s grocery delivery service) announced a partnership with EatLove, a personalized nutrition platform and meal planning service. According to Engadget Amazon also announced that consumers will be able to buy ingredients listed on allrecipes.com, a popular recipe website with over 80 million users, directly from AmazonFresh.

“We want grocery shopping to be as seamless and convenient as possible for customers, and this integration makes it easier than ever for them to shop for all the ingredients needed for new or fan-favorite recipes,” an Amazon spokesperson said in a statement.

EatLove’s personalized nutrition takes into account nutrition, health, and lifestyle goals, as well as food allergies and taste preferences, before creating a customized meal plan. After an initial evaluation is completed, the user is given a custom meal plan for the week along with a grocery list, daily reminders, and step by step recipes. All ingredients can be purchased and delivered conveniently via AmazonFresh. Similarly, Amazon’s integration with allrecipes.com will add an AmazonFresh order button alongside some of its most popular recipes. This function will have the necessary ingredients shipped to customers’ doorsteps, as long as they reside in one of the regions in which the service is currently available

There is still some skepticism surrounding shopping for groceries online, despite all of the recent innovations. Retail analysts say the idea of not being able to inspect produce before receiving it can be off-putting for some customers. Other online industries, such as books and electronics, seem to be less problematic.

The millennial generation is much more accepting of online grocery retailers. It should come as no surprise that those most likely to purchase groceries online are young, affluent individuals who reside in urban areas. Meal kit delivery services, such as BlueApron and HelloFresh, have grown tremendously popular amongst this demographic. Cowen & Co estimates that online grocery sales will rise 34 percent this year.

Amazon’s move into meal kits could be a major threat to existing meal kit services considering the internet giant’s existing millennial Prime customers. Utilizing their services will be an added convenience to a generation that values convenience and a streamlined approach to life. If AmazonFresh proves to be a more effective option, Amazon will be disrupting the disrupters.

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