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Amazon closing its Fresh and Go stores

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Re: Amazon closing its Fresh and Go stores

#381

Earlier quoted context omitted.

This comment completely misunderstands why NYC (and the core of most major cities) is not impressed by a supermarket. Wegmans is popular because Wegmansnis good. But if you have a local baker, a local grocer, a local deli, and a small grocery store within the same block, all within walking distance of your apartment, you don’t need to deal with the hassles of finding stuff within a massive supermarket. You get the hi…

It’s normal in London to live a few min walk to bakery, grocery, deli, so on but we still have supermarkets - from smaller ones to large hypermarkets. Everyone uses them and they sell good quality products. The same is true in every European city I’ve been to. There’s a large hypermarket a short walk from the Arc de Triomphe and you can hardly say Parisians don’t have a good choice of local bakeries, cheesemongers an…

Sure, Europe is different than the US in many ways. I think most people know that.

What is more surprising to me is that Europe has become relatively homogenous. There are more differences between some US states than there are between some European countries, if we set aside language. A mid size French city vs an equivalent German/British/Swiss/Italian city… they differ of course but Tampa vs Seattle is a bigger contrast to me.

Re: Amazon closing its Fresh and Go stores

#382
post #352

Earlier quoted context omitted.

What is “predatory pricing” vs. “pricing”?

Selling items for less than they cost to produce is known as "dumping" in international trade (where it is generally disallowed by trade organizations) and can be illegal in the US if the intent is to eliminate competition [0]. That last factor can be hard to prove, and I don't think the FTC is doing much about anticompetitive behavior these days. [0]: https://www.ftc.gov/advice-guidance/competition-guidance/gui...

I'd be unsurprised in this case that Amazon could produce the product profitably for less than half the cost due to scale.

Re: Amazon closing its Fresh and Go stores

#383
post #352

Earlier quoted context omitted.

What is “predatory pricing” vs. “pricing”?

Selling items for less than they cost to produce is known as "dumping" in international trade (where it is generally disallowed by trade organizations) and can be illegal in the US if the intent is to eliminate competition [0]. That last factor can be hard to prove, and I don't think the FTC is doing much about anticompetitive behavior these days. [0]: https://www.ftc.gov/advice-guidance/competition-guidance/gui...

The Biden admin went slightly harder against anti-competitive actions and anti-consumer actions by companies and all the billionaires freaked out and poured money into Republican campaigns in 2024 in order to roll all that back.

Re: Amazon closing its Fresh and Go stores

#384

Earlier quoted context omitted.

Walmart isn't a budget grocery store, though. Its prices are higher than actual grocery stores (like Safeway.) Also, everyone is WAY cheaper than Instacart.

Not in the areas of California I frequent. Walmart is usually the cheapest around here; heck, even Target beats Safeway on some items. On the other hand, Walmart is also usually the worst at stock rotation.

Walmart is certainly the cheapest in some rather remote cities, like Fargo, ND.

Re: Amazon closing its Fresh and Go stores

#385
post #349

These were absolutely incredible when they first opened up right on until covid. The blue-apron style meal kits they had were actually really tasty and the gimmicky integration with Alexa to tell you the next step in the recipe was actually kind of useful when you were busy stirring a pot or cutting something and too busy to pull out the recipe card. It was like a 7-Eleven, but with the prices of a normal grocery sto…

> I had many friends who worked on Amazon Go, so it's a bit sad to see that work come to an end.

What did they do?

Re: Amazon closing its Fresh and Go stores

#386

The Amazon Fresh in North Seattle had Just Walk Out. Initially you had to "scan in" and "scan out" and then they eventually removed the "scan out" (or scan in? can't remember). From a shopper's perspective, it was pretty good, and I was hopeful they'd figure out the tech. One time they overcharged me for a paper bag and there was no way to dispute it. It was only $0.08, but really rubbed me the wrong way. I know I go…

You were overcharged .08 cents for a paper bag? Like you were charged $0.16? Or did you not use a bag and were charged anyway?

Re: Amazon closing its Fresh and Go stores

#387

Earlier quoted context omitted.

Predatory pricing is illegal in the US, but difficult to prosecute under the existing laws.

What is “predatory pricing” vs. “pricing”?

Predatory pricing:

A big gorilla comes in and under prices the entire market. They can do that because they already have tons of money. They do this long enough to break the market and drive the competition out of business. Once the competitors are gone they jack up the prices to unprecedented levels because there's no more alternatives available and bleed the market for all the money.

Regular pricing:

Charge a fair price based on actual costs.

Re: Amazon closing its Fresh and Go stores

#388

Earlier quoted context omitted.

I feel like they artificially made their prices super low for the last couple years and intentionally operated at a loss as a business tactic to force out competition and kill off local grocery stores. There were instances of their prices being lower than Walmart or other budget stores. The avocados were $0.25 each and carrots were half price of ones in Safeway, even ground beef was weirdly cheap. One time as a compa…

This is basically the playbook of every "disruptive technology" startup or FAANG initiative of a similar stripe - set prices incredibly low to bleed out competition and gain market share, then raise them once you are in the dominant market position.

Correct, and this is why US big tech, including the big LLM players, need to be tarriffed/DSTed harder than Chinese cars by the rest of the world. They get big off of the exact dumping that China has always been accused of.

Re: Amazon closing its Fresh and Go stores

#389

Earlier quoted context omitted.

Such tactics sound… illegal

Illegal in what way? They are not allowed to set prices lower than competitors or raise them at any time?

> Amazon duped his product and sold it at something crazy, like half price

Pricing below an appropriate measure of cost is generally considered predatory pricing. It is very difficult to enforce this, but that doesn't change the fact that it could be illegal and a violation of antitrust laws.

Re: Amazon closing its Fresh and Go stores

#390
post #26

Has anyone used their go stores? I'm curious how the experience felt from a consumer standpoint. Do you feel welcomed or more like a thief? I remember WAY back in the day when Arby's implemented touch screen ordering (on CRTs!) and it was a very quirky process. An Arby's employee would sit behind the counter and stare at you while you spent 5 minutes poking a CRT display. Very slow and very impersonal. They discontin…

The regular Fresh stores have a scanner and screen on the cart that you can use to track your purchases while shopping, then the cashier could pull up the contents in one go, without scanning scanning at the register. There's also some discounted products for Prime members that can be applied by pulling up your account on your phone and displaying a barcode.

I went there the first week they opened, and the whole store was a mess with shoppers standing still or walking slowly, completely unaware of their surrounds, while messing with the phone or their cart trying to figure it out.

I'm sure that with enough time, shoppers could figure out there system, but I was in a hurry so I just grabbed the few items I wanted and paid cash, which was just as fast as it is everywhere else.

I do want to stop by before it closes, and see if customers figured out their systems, in the year and a half the location has been open.

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