Amazon has a huge opportunity in grocery delivery

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.

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