Amazon to buy Whole Foods

Amazon.com Inc. will acquire Whole Foods Market Inc. for $13.7 Billion, a bombshell of a deal that catapults the e-commerce giant into the supermarket business with hundreds of store across the US.

Amazon agreed to pay $42 a share in cash for the organic-food chain, including debt, a roughly 27% premium to the stock price at Thursday’s close. The deal sends a shockwave across both the online and brick-and-mortar industries, uniting two brands that weren’t seen as obvious partners. For Amazon, the deal is more about getting a distribution network for groceries. It has spent years trying to break into delivering groceries, but hasn’t been as successful as in other categories.

The transaction also may help Amazon sideline Instacart Inc., a startup that has delivered grocery orders from Whole Foods stores in more than 20 states and Washington, D.C. Amazon’s biggest acquisition announced to date came in 2014, when it agreed to buy video-game service Twitch Interactive Inc. for $970 million in cash.

Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy. The takeover is slated to be completed in the second half of the year, with Whole Foods’ headquarters remaining in Austin, Texas.

Google shopping Express

Google Shopping Express is a same day shopping service from Google that was launched publicly last year in San Francisco and Silicon Valley. In May 2014, this service was expanded to New York and Los Angeles. Amazon is the main competitor of Google in Market, who is also giving same day delivery in US states. Amazon use Octopocters to deliver products whereas Google Sedan cars and Ford vans to deliver products within four to five hours.

Customers pay only $5 per shopping cart for a product to be delivered in four to five hours on their window. Google also accepts credit cards and customers can add their products to Google wallet. This year Google is spending $500 million to expand the Google Shopping Express. This year Google is advancing grocery delivery service. Amazon has always been the top e-commerce site and Google has been the top search engine. Google tried to join with Google Check out and Google wallet, which helps shoppers to buy goods through Google. However, people still prefer Amazon and so the company is expanding their services.

This amazing service gives Google a crack at the $600 billion grocery market. Although this service will close loop for advertisers. Google is planning to expand this service in India too and current shipment is for only grocery items. Other competitors for delivering grocery items in market are AmazonFresh, Instacart, and Postmates.

AmazonFresh is a service started by Amazon. Instacart is an application running in US to deliver grocery products. The benefit of this application is if a product is not available in the store and bill for the same is generated then Instacart took the unavailable items from the bill. Their deliveries charges are high and price of products are 67% higher than Supermarket stores. Postmates, is an application and the benefit of it is that it will send you picture and number of delivery boy. It also offer refund and replacement facility. Deliveries charges and product are cheap. With these many competitors in market, Google is trying to reduce the delivery charges and reduce the shipment time.