The collaboration that the marketplace and the supermarket will have is available for some postal codes in the southern area of the Mexican metropolis, since the distribution of the ‘fresh’ products will take place from the distribution center that Jüsto has in Coyoacán. There will be approximately 7,000 products ranging from fruits and vegetables, to cleaning, home or proteins.
“We wanted a partner that shared the vision we have for attention to detail, consumer experience and focus on supporting small and medium-sized Mexican businesses, with which Jüsto works hand in hand,” said Pedro Huerta, Country Amazon Mexico Manager.
Amazon Fresh is Amazon’s grocery delivery service, launched in 2007, which began as an experimental platform in Seattle, but has evolved significantly, expanding to several cities in the United States, Europe, and Japan.
The service allows users to buy fresh and supermarket products through the Amazon platform and receive them on the same day or at scheduled times.
To strengthen the distribution of fresh groceries, Amazon Fresh has collaborated with supermarkets and food suppliers. The best-known association is with Whole Foods, whom they finally acquired and which, in Huerta’s own words, helped them expand throughout the US, while since 2016 they have been working with the Morrisons chain in the United Kingdom.
Unlike this type of partnership, on this occasion Amazon chose a completely digital supermarket, which gives it a different strategic touch than what it has done in other territories.
“In Mexico we decided on this strategic strategy, because we found a startup that aligns very well with the vision we have as a consumer and that also has those technological skills to be able to integrate, because many times the ideas are there, but the technological capacity to code It is not so simple to have,” Huerta pointed out.
Amazon’s business in fresh foods and groceries, while strategic, remains a relatively small part of its total revenue. In its recent quarterly report, the company reported revenues of $158.9 billion, with growth of 11% year-on-year, driven mainly by its cloud services division, AWS.
The Amazon Fresh segment and other food and grocery initiatives in North America, while growing, do not contribute as much as AWS in terms of profits. However, executives from both companies see this alliance as an opportunity to attract more customers interested in online groceries.
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