AmazonFresh is an expensive service. The team is searching for routes to dominate the high-end grocery market (worth billions) before launching into the worldw

AmazonFresh is an expensive service. The team is searching for routes to dominate the high-end grocery market (worth billions) before launching into the worldwide grocery market (worth hundreds of billions). AmazonFresh customers and Whole Foods customers value convenience and quality. They are much less price sensitive than most. Whole Foods has millions of customers. Amazon will surely be advertising AmazonFresh or some re-branded form of it - such as "Whole Foods Direct" - to Whole Foods customers. Do Whole Foods turn into AmazonFresh warehouses? Possibly, but it's unclear how the two business will eventually integrate. It's also possible that Instacart gets acquired by Amazon, but for the most part I see them getting screwed in this deal. Instacart's business development deal is like bringing a knife to a bomb-fight. The other major value this deal brings to Amazon is the industry-specific knowledge that the Whole Foods team brings. As a frequent East Coast, Whole Foods shopper, I am always amazed to see how much of their food comes from the West Coast/all over the world. I think the execs of AmazonFresh, who are mainly HomeGrocer/Webvan execs, appreciate the complicated logistics of doing the businesses. Amazon will be able to combine its software engineering knowledge/logistics knowledge with Whole Foods' expertise at creating an amazing grocery-shopping experience.