Amazon’s Whole Foods acquisition is part of a bigger move to dominate all logistics

Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market's net debt.

"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy," said Jeff Bezos, Amazon founder and CEO. "Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades - they're doing an amazing job and we want that to continue."

This move will strengthen Amazon's food delivery business.

Meituan-Dianping is China's largest food delivery app service. In Jan 2016, they raised $3.3 billion and were valued at $18 billion. They began ridesharing services recently and are competing with Didi. Didi had to go to high end rides and cut its workforce in Shanghai and Beijing.

A combined food, retail delivery, package delivery and ride sharing service could end up being the most efficient and globally dominant model.

Amazon wants to build a globally efficient and dominant logistics system.

Complete food delivery dominance could be a means to also have profitable ridesharing.