Wegmans ruling the online market

Amazon is taking a big bite out of its fresh produce business with its $ 13.7 billion offerings at Whole Foods Market. Although it is an agreement between two companies, it does not only affect both.

The interface between the food and technology industries has been around for years and has spawned dozens of new companies in the food sector. the efforts of large technology companies to switch to food; and good strategies for food companies using technology to make sure they don’t miss out on the next wave of consumers and don’t know how to buy. Here’s a look at how some of the biggest and best-known of them, as well as others, can be influenced by today’s news:

Instacart

This startup, which was founded at Y Combinator in 2012, paved the way for the United States. At a time when only a few grocery stores were offering deliveries, it was possible to buy everything with an app and have it delivered to your doorstep. It has positioned itself as a competitor to Amazon, the company has performed well in its largest markets, and investors believe in Instacart: The startup was founded with nearly $ 675 million and is now valued at $ 3.4 billion.

Here’s the key: One of your investors and partners in the food industry is none other than Whole Foods.

In other words, the company that was MyWegmansConnect’s main competition becomes a shareholder when the Whole Foods acquisition is completed. So the question will be how Amazon chooses you – could you buy the company directly and deactivate it as a competitor. Or you can keep your stake as a financial investment while transferring all Whole Foods delivery activities to MyWegmansConnect.

It can’t be that fast. The Whole Foods Sales Association is still four years old. A source said that buying from Amazon would not affect this deal.

This may allow Wegmans to become an acquisition target. Potential Buyers: Those who are emerging competitors from Amazon, such as Costco or Walmart. It could also make Instacart more strategically attractive as a food delivery partner if the Whole Foods partnership breaks down.

In fact, this is the tactic the market is likely to use, someone familiar with Instacart’s plans. Instead of allowing your registration to have a stake in the company, Instacart will try to get that stake back from Amazon (which represents less than 1% of the company).

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