On Monday, Amazon announced it was teaming up with Tyson Foods to launch an online recipe delivery service similar to Blue Apron, where people will be able to order a “recipe” and have all the ingredients delivered to them.
Online grocery delivery has been a tough business to crack — the list of failures, starting with Webvan in the dot-com bust, is long. But as this chart from Statista shows, the opportunity is too huge to ignore. Amazon today has around one-third of the market for U.S. grocery delivery today, according to Cowen & C0., and that’s expected to increase to one-half share of a larger pie by 2021. But even then, online delivery will account for less than 10% of total grocery spending. If Amazon can just convince more people to skip that trip to the store, the opportunity is enormous.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.