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Both are in the grocery business. However, both are effectively "bit players" in the business: Whole Foods has about 1.7% market share, while Amazon has 0.8%. F
by sib 9y ago
Both are in the grocery business. However, both are effectively "bit players" in the business: Whole Foods has about 1.7% market share, while Amazon has 0.8%. For comparison, Walmart, plus its subsidiary Sam's Club, has over 20% market share.[1]
Generally, in the US, competition inquiries focus on the Herfindahl-Hirschman Index (HHI) for a quantitative evaluation of industry concentration (https://en.wikipedia.org/wiki/Herfindahl_index https://en.wikipedia.org/wiki/Herfindahl_index). A potential combination with market shares such as Amazon's and Whole Foods' usually won't be seen as dangerous using that metric.
There are other concerns as well, of course, but the HHI is a critical one.
[1] https://www.statista.com/statistics/240481/food-market-share-of-the-leading-food-retailers-of-north-america/ https://www.statista.com/statistics/240481/food-market-share...