Leading e-commerce business, Amazon, is the latest firm to join the meal kit bandwagon. The global, internet marketplace is reportedly collaborating with Tyson Foods to develop a range of meal kits and accompanying delivery service through its grocery delivery division, Amazon Fresh.
In recent years, meal kits have accelerated in prominence thanks to the convenience and flexibility they present to customers. Despite starting as a way of dieting, a number of big names have since developed their own meal kit recipes and delivery services â many with huge success. Indeed, the US market-leader, Blue Apron, is reported to sell around 8m meals a month via its meal kit subscription service.
The apparent leader in the space, Blue Apron, now ships eight million meals a month through its subscription service. Thatâs the equivalent of over 250,000 a day!
Donald Smith, CEO of Tyson Foods revealed that the meal kits developed by itself and Amazon would be named Tyson Taste Makers. And whilst Amazon will no doubt be drawing on the wealth of experience the multinational corporation possesses in meat processing, the e-commerce giant will be utilising the procurement power, market intelligence and delivery service of its sister arm Amazon Fresh for this latest venture.
Itâs perhaps not unexpected that Amazon has diversified into the meal kit market, particular having achieved such rip-roaring success with food delivery business, Amazon Fresh. Moreover, it has the necessary mechanisms in place to facilitate the development and delivery of products thus it might prove a more natural progression that any of the firmâs previous strategies of diversification.
Amazon Freshâ grocery delivery service currently sets customers back $299 dollars a year in the US. And despite no known plans to extend the service to the UK, London Amazon Prime customers are now able to have some chilled and frozen items delivery through the paid subscription. Where the UK will ever enjoy the same high-speed, quality delivery that customers in California, New York City and Seattle benefit from is as yet unclear. Nevertheless, should this latest development in Amazonâs food retail and delivery business prove successful, the firm may well look to expanding overseas and one can expect the UK market to be first on the hit-list.