Amazon Buys Whole Foods for Internet of Things (IoT), AI and Drone Delivered Grocery

Amazon will buy Whole Foods Market, Inc. for $13.7 billion as per an announcement made today by both companies. This will give Amazon access to healthy and organic food to be offered in-store and delivered locally across the United States.

“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” saidJeff Bezos, Amazon founder and CEO. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”

Automated Stores

But this story is more than just about healthy food. Amazon has been trying to disrupt the grocery market through the use of Internet of Things (IoT) and Artificial Intelligence (AI) technologies. Last year the company demonstrated the concept of Amazon Go a store that does not need check out lanes. You just enter the store, pick the item, pay with your mobile app and walk out. It is highly probable that Amazon will convert Whole Foods stores into similar automated IoT stores. 10px-spacerWith Amazon’s AI capabilities, the store would know your preferences and serve you with your grocery list even before you decide to buy. You may not even need to go to the store as Amazon would delivery your grocery to your homes using drone technology.

Why Whole Foods?

Amazon specifically targeted Whole Foods which is popular in urban areas where people are burdened with traffic and are open to experimenting with new models such as using apps for grocery delivery. Whole Foods also opened a new chain called ‘365’ which is geared towards millennials who want to spend less but are well versed with technology. 365  is targeting the wholesale prices of Costco combined with latest technology and attractions for millennials.

This seems like a perfect fit for Amazon as they try to modernize and simplify store experience. Another industry for Amazon to use the power of the internet and what’s more – Amazon can do it without thinking about making profits in the short term.

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