Amazon is a beast in the world of online retailers. It's so successful that there are approximately 80 million Amazon Prime members in the U.S. alone. Free two-day shipping, Prime Video and Prime Music are just a few Prime perks.
But is Amazon turning into a monopoly? The company is pursuing a huge acquisition that might make you think it is.
Amazon's massive acquisition
Amazon sent shockwaves through the business community Friday when it announced its purchase of supermarket chain Whole Foods. The deal is estimated to be worth nearly $13.7 billion, at $42 per share. It's expected to be official in the second half of 2017.
Whole Foods CEO said, "This partnership presents an opportunity to maximize value for Whole Foods Market's shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers."
Amazon already offers a home delivery service for groceries in certain markets. This acquisition makes the online retailer a major player in the brick-and-mortar grocery store arena.
The company also opened a brick-and-mortar bookstore earlier this week in New Jersey. That is the eighth Amazon bookstore currently open around the U.S. and more are expected in the future. Which is a little ironic since Amazon began its operation as an online bookstore.
Now that Amazon is in the brick-and-mortar business selling books and groceries, who knows where it will set its sights next? The company has a great business model and people obviously love shopping on its site.
Businesses being in competition is always great for the consumer. However, it could end up being a bad thing if one company monopolizes the market.
Are you concerned that Amazon could turn into a monopoly? Leave a comment and tell us your thoughts.