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Amazon (AMZN -1%) roundup: 1) Amazon is set to expand its AmazonFresh grocery delivery business,...

Amazon (AMZN -1%) roundup: 1) Amazon is set to expand its AmazonFresh grocery delivery business, in trial mode in Seattle for 5 years, to Los Angeles "as early as this week" and San Francisco later this year, Reuters reports. An industry consultant claims Amazon, long expected to expand its grocery ops to areas where sales tax is no longer a concern, is targeting up to 40 markets. Grocery chains (SWY, KR, SVU, WFM, TFM) can't be thrilled, particularly given Amazon's pricing history. 2) eMarketer estimates Amazon generated $610M in ad sales last year, and will produce $835M this year. A targeted ad network could fuel additional growth for the business, increasingly seen as a threat to Google (GOOG).
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Comments (3)
  • AdamDivy
    , contributor
    Comments (418) | Send Message
    I am a big Amazon shopper but I don't think I'd buy my groceries from them.
    4 Jun 2013, 03:07 PM Reply Like
    , contributor
    Comments (50) | Send Message
    This appears to be just another marginal profit making gimmick that Amazon is adding to its portfolio in order to boost total revenues. With its present mix of totally unrelated business ventures Amazon will never generate large profits. It is just another low-profit conglomerate doomed to suffer the same fate as Gulf & Western, Litton Industries, and other such entities.
    4 Jun 2013, 03:47 PM Reply Like
  • Amit Ghate
    , contributor
    Comments (194) | Send Message
    Amazon has been able to transform many businesses (though not necessarily generate profits from doing so), but one has to wonder what happens when they target businesses with already super-low margins? Call me a skeptic...
    5 Jun 2013, 12:01 AM Reply Like
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