Amazon is making huge steps into a series of new services for its ever-growing list of clientele. This holiday weekend, Amazon’s “Amazon Local” service kicked off. The service offers deals on food-delivery, entertainment, shopping, and even travel. It seems as though they are trying to implement a food-delivery service to compete with the likes of GrubHub or DeliveryHero.
This service is not too different from Amazon Fresh, a grocery delivery service whose beta test was launched in 2007. In my opinion, this is probably in line with a strategy that Amazon has to be able to deliver to your home with same-day delivery. We heard a little over a year ago about Amazon testing out using drones to deliver packages with same-day delivery. I’m not sure if they’ve made any significant steps towards drones, but perhaps they’ve shifted their strategy to include package deliveries with their take-out and grocery delivery services. To be honest, this huge vertical integration of services is somewhat scary to me. It could disrupt many many businesses. I mean, just imagine the revenue companies generate from having Amazon as a customer. It’s got to be frightening to think about losing them.