Amazon.com, Inc. (AMZN) Drive-Through Set to Change Shopping Forever

Amazon Delivery Service

Amazon.com, Inc. is reportedly planning to open a drive-through grocery store in Silicon Valley. The world’s largest online retailer will set up a store to enable users collect items for which the online order has been punched, says a report from the Telegraph.

Amazon Drive Through Pick up

Making it easier for buyers

A report from The Telegraph says that users will be able to take the items from a chosen point after being briefed on the time, which has been fixed before. Amazon is looking to offer utmost comfort to the users, and therefore, is making the facility in a way to make it easier for users, who are walking or biking, to come and collect their items.

A report from KTVU notes the grocery store would be located in Sunnyvale, and the warehouse will have a pickup area with eight cars parked. A real-estate developer has submitted the project on behalf of Amazon, stating the size of the building would be 11,600 sq./ft.

Amazon already runs Amazon Fresh, a grocery delivery service along with other services like Amazon Locker that enables users to collect the items they ordered from a secure location. Apart from the drive through grocery store, the firm is also looking to launch “Prime Air” under which it can deploy drones to deliver purchases to customers in 30 min or less. Currently, the Prime Air centers are located in the US, UK and Israel. The retailer is also testing similar set ups in other off-shore locations, says the report.

Rising threat for Amazon

There is no mention of Amazon  on the planning documents, and city officials are also silent on any such development, says the report. It would be no surprise if Amazon is behind this as this is the kind of innovation that the firm is popular for.

Initiatives like this will help Amazon to take on existing, as well as, potential rivals such as Jet.com, which has finally taken off. After a three-month trial, the e-commerce startup made its debut last week with $1m in first-day sales, says a report from Mashable. The firm was able to get $220m in investor funds even before gaining a single customer.

The success so far, can be attributed to founder’s capability, unique pricing software and well-laid plans to compete with Amazon .

Jet charges $50 for an annual membership, and in return guarantees lowest prices along with more discounts for the frequent buyers. The startup also gives “Jet anywhere” option, allowing members to avail discounts even at unrelated sites. And, to get an edge over rivals especially Amazon, Jet shows buyers how much they are saving when compared to Amazon’s prices.

On Friday, Amazon shares closed up 9.80% at $529.42, and year to date the stock is up over 70%. In the last 12 months, stock are up over 63%.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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