Amazon has moved into the food delivery space with a few meal kits currently being offered to users in specific areas. The company is offering complete and fresh meals to test out the prepared meals market. Customers that currently live in areas where Amazon operates its Fresh grocery stores have access to the prepared meals currently.
Why Prepared Meals
So why is Amazon making its way into the prepared meal market? Shares in Blue Apron have recently tapered off with customers no longer interested in the meals that Blue Apron offers (and Blue Apron was the biggest purveyor of fresh prepared meals). Seemingly, Amazon thinks that it can do better in this market.
At present, there aren’t a ton of fresh prepared foods in Amazon’s marketplace. Seventeen in total, to be precise. The meals that are offered are also rather pricey, ranging from $15.99 to $19.99. The types of meals that Amazon is offering include things like falafel patties with sides of salads and other meals that come with all the fixings.
A few months ago, Amazon trademarked the phrase, ‘We do the prep. You be the chef.’ That’s kind of the notion that Amazon is going with regarding these foods as well. Amazon has also told press in the past that the company wants to expand into food delivery. So fresh prepared meals seems to be well within these lines.
Amazon is, perpetually, the company that loves to create new things and expand its horizon. Once strictly a bookseller, Amazon has come a long way from just selling books. Amazon’s foray into food is an interesting one, and it coincides with the company’s recent purchase of Whole Foods, Inc. as well.
Is Food the Future?
Amazon seems to think that there’s a future in the food business. The company turned to produce with Amazon Fresh, and now Amazon is offering fully prepared fresh meals to certain consumers. Yet, there’s little evidence to support that consumers will purchase pricey prepared meals - and it’s not a concept that’s entirely a new one (Blue Buffalo being the obvious example).
Right now, Amazon’s Fresh service is available in thirteen cities in the U.S. along with London, Tokyo, and Berlin. Presumably, the fresh prepared meals will also be available in those cities. It’s not likely that Amazon will shun its publishing or content service any time soon, but it is clear that the company does want to put a stronger emphasis on food.
Expanding it Food Market'
Amazon hasn’t made any moves to open any more Fresh stores in other U.S. cities, but the move to purchase Whole Foods back in June was a big one. It will be interesting to see whether or not consumers purchase the fresh foods that Amazon is now putting out - or if Amazon’s food options will go the way of Blue Buffalo.
It will also be curious to see whether or not Amazon changes Whole Foods. For now, the company is testing the market with high-priced falafels and things of that sort.