Apple and Netflix Could Learn From Amazon
Editor's Note: Amazon.com CEO Jeff Bezos' surprise purchase of The Washington Post is a personal investment, reportedly not related to Amazon. The following story is about Amazon.com. For more on Bezos's takeout of WAPO, see Chris Ciaccia's story on the subject: Washington Post Sold to Jeff Bezos for $250M .
NEW YORK ( TheStreet) -- In March 2011, the visionaries over at Seeking Alpha rejected an article I wrote about Amazon.com's
All of a sudden, Amazon Fresh is not only a relevant story, it could become an increasingly important part of Jeff Bezos's seemingly wide-ranging, but ultra-focused strategy. Bezos wants the tentacles of the Amazon ecosystem to touch your life in some way, shape or form as often as possible.
After a roughly six-year pilot program in the Seattle area, Amazon Fresh debuted in and around Los Angeles this past June.
In 2011, I asked Will Amazon Fresh Go The Way of Webvan ? If not the biggest dot-com bust of the early 2000's, Webvan was one of the better poster children for things that went wrong during that time:
As a San Francisco resident from 1999 to 2006, I recall, with fondness ... -- Webvan. The company blew its venture capital and IPO money on everything from television spots during the Oscars to a $1 billion warehouse and more than 100 swanky Herman Miller Aeron chairs. To make matters worse, former CEO George Shaheen walked away with a golden parachute that pays him $375,000 a year for the rest of his life.
While I could not confirm it, I assume Shaheen, who turned 69 last month, still collects that check.
In any event, under the radar since I discovered it in early 2011, Amazon made Webvan "part of the Amazon family." At least Webvan.com, which remains active today. You can order a whole slew of non-perishable grocery items via the Website just as you can Amazon.com.
But now, if you live in select areas of the Seattle and Los Angeles metropolitan regions, Amazon gives you Webvan-style service, delivering everything from non-perishables to produce, meat and dairy. You name it. I live in Santa Monica -- part of Los Angeles County, but it's own city -- and Amazon offers "Fresh" in my zip code. In the past week, I have seen trucks on two occasions -- driving through my neighborhood and, as captured below, in Santa Monica's Downtown core.
Amazon uses groceries to lure you into purchasing other, higher-priced, presumably higher-margin items. The layout of the Amazon Fresh Web site actively encourages customers to go browse beyond groceries ("Over 500,000 Amazon Items") from media to small appliances to home improvement to pet supplies, patio, lawn and garden, automotive and more.