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English Español Amazon should get into the gas station business, says top analyst

Internet retailing giant Amazon should be investing in gas stations as it would provide the firm with numerous locations to deliver its products, according to DA Davidson analyst Tom Forte.



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In addition to its conventional delivery methods, its new brick-and-mortar stores and the Whole Foods locations, Amazon would benefit from the addition of “thousands of commercial locations to advance its delivery efforts,” analyst Tom Forte wrote to clients.

Amazon could use gas stations both its Amazon Lockers – the company’s centralized package pick-up services – and for Amazon Go stores. DA Davison believes that these locations would also “provide the company additional data on the physical whereabouts of consumers.”

The sale of fuel would also provide another stream of income

This information comes after the Wall Street Journal reported that Amazon is planning to expand the reach of Whole Foods – a business it acquired in 2017 for $13.7 billion – by building a number of new retail facilities.

Having access to Whole Foods’ large supply chain of fresh products would also allow Amazon to offer a comprehensive food offering at its sites.

With Amazon venturing into a number of different businesses and gas stations posed to become service hubs in the future, traditional players from the fuel retailing business will be weary of the company’s possible entry into the forecourt market.  

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