As of today, the retail giant Amazon has decided to buy Whole Foods Market for a whopping $13.7 billion. We all know that Amazon has been trying to enter the food industry and take on grocery stores in the same way that it takes on fashion retailers. But for an online retailer that is already putting enormous pressure on its competition, is this a step towards Amazon becoming a monopoly?
Amazon's prices are incredibly competitive, already forcing mega super stores like Macy's and Nordstrom to close up shop all over the country. Now, they are competing in the food industry by delivering your groceries and daily needs directly to you (and it's very convenient to be honest). However, with all this marketplace dominance, does this cross a line and/or hurt capitalism?
Competition is normal and healthy for our economy, but Amazon is making this increasingly difficult for some of the largest businesses in America. CEO Jeff Bezos is about to surpass Bill Gates as the richest man in the world and Amazon broke $1000/stock on the NYSE. So here's the conundrum. Do we celebrate this manifestation of American entrepreneurship and embrace the change? Or, do we draw a line to protect capitalism and the dwindling brick-and-mortor establishments in our nation?
If Amazon keeps it's current place, allowing you to order groceries on your iPhone and delivering your packages with drones (say goodbye to the Post Office), then we might be witnessing a retail industry revolution. Jeff Bezos is becoming a modern day Rockefeller, but in the best of ways.