🛒 Amazon Ends Grocery Service in Germany
On December 14, 2024, Amazon will terminate its fresh grocery delivery in Germany, after struggling for seven years to make a significant impact. It only managed to operate in Berlin, Hamburg, and Munich. Amazon's decision to exit comes as it seeks to simplify its offerings and focus on non-perishable goods instead. This shift underlines the challenges faced in cracking the German grocery market.
🤝 New Partnership with Rohlik's Knuspr
Just a week before the announcement, Amazon revealed a partnership with Czech online supermarket Knuspr, part of Rohlik Group. In Berlin, Prime members can now enjoy a selection of 15,000 fresh and locally sourced products delivered within three hours. As logistics are already in place with Knuspr, this collaboration aims to boost Amazon's presence in grocery delivery.
📉 Challenges Continue in Food Market
Amazon faces ongoing struggles within the food sector. Earlier this year, it discontinued its Fresh delivery services in parts of the UK. Complications related to its cashless ‘Just Walk Out’ technology have also contributed to its challenges, along with the closure of some Amazon Go stores in New York. Gregor Ulitzka of Ocado Solutions commented that online food shopping is complex and difficult to make profitable.
🔍 Future Outlook for Grocery Delivery
The grocery market remains turbulent for major players like Amazon. The partnership with Knuspr might offer a fresh path, but skeptics wonder if it’s enough to turn the tide. As Amazon continues to navigate these challenges, the focus appears to be on strategies that bolster profitability in the grocery sector. Analysts will watch closely to see if this new direction will yield results.
Will Amazon's strategy shift succeed in groceries?
