The deal unites the online juggernaut with the grocery store chain that fell behind as the organic and natural foods it helped popularize expanded to more locations and shoppers found "good enough" alternatives. "The checkout-free experience in Go is not yet ready for prime-time as it is still only being beta-tested by AMZN employees, but we believe the Go technology could be rolled out to physical retail, including Whole Foods, over time".
He said he expects the marketing to begin shortly after the combined company closes the deal in the second half of the year.
The Whole Foods deal could also get more people to try grocery delivery, something many shoppers have been hesitant about because of concerns about meat and produce quality.
Marc Perrone, head of the United Food and Commercial Workers International Union, which represents millions of grocery workers, said that Amazon's "brutal vision for retail is one where automation replaces good jobs".
Here's a brief look at the winners and losers in Friday's big deal.
The buy marks Amazon's largest acquisition to-date. "Why would it keep Instacart?" said Smith.
Many like the fast and convenient service Amazon provides but others are asking at what cost. While Amazon has been building more and more delivery hubs, the Whole Foods deal gives it 456 stores that it can instantly fit into that network, said Josh Olson, analyst with Edward Jones. It reportedly makes up less than 10% of Instacart's revenue, still a substantial sum.
"However they're going to use Whole Foods in their portfolio, you're going to see it here in Dallas", Cox said.
Courtney Hiddeman and her family live right down the street from the Whole Foods "world headquarters" on Bowie Street in Austin. Whole Foods itself had launched an offshoot chain named after its "365" private label brand in a nod to the popularity of no-frills chains. According to the source, Whole Foods reaffirmed its partnership with Instacart on Friday.
Jana Partners did not respond for a Reuters request to comment.
While it is too early to say whether Amazon's effect on the entire retail sector will spread to the mammoth local grocery store business, there is little reason to think otherwise.
Goldman now stands to receive $30 million to $35 million in advisory fees, while Evercore stands to receive $40 million to $50 million, according to estimates from investment banking advisory firm Freeman & Co LLC. That includes major chains like Costco, Supervalu and Wegmens, which was just announced this week. The giant retailer sells the most groceries than any other retailer. It also charges customers delivery fees.
The news sent shares of Kroger, the nation's largest grocer, down 9.2 percent on Friday after it had sunk 18.9 percent on Thursday, when the Cincinnati-based retailer lowered its financial outlook. The giant retailer sank $3.67, or 4.7 percent, to $75.24.style="text-align: center;"