it is not just instacart. are other third-party providers who can go to grocery stores and say you need to work with us because you have a huge competitor who is even more powerful now. partnering with us maybe the way to save yourself. emily: do you see greater consolidation across the grocery industry? bob: i think there has to be. look at what the market did today. in one day, massive change. that clearly reflects where people think it needs to go. i think we will see dramatic changes. the bigger question is how that ripples into the general markets, into target, walmart, and those places as well. clearly i think in groceries, we will see some movement happen. emily: what will it mean for other tech giants? google has its own shopping service competing with instacart and amazon fresh. what does it mean for the bigger companies? do they recede or jump in full throttle? >> google has been pulling back from google express in the last year or two. they had a partnership with whole foods that has lessened. it is

>> is complicated for instacart. they are an investor in instacart. this relationship for years. to have whole foods be a supporter of amazon is complicated for instacart. they have four years left on a five-year contract they signed with whole foods. emily: will the contract hold? ellen: we are hearing it is still valid and allows us to cart to be the exclusive delivery provider for most of whole foods products. emily: there has always been a question about whether a grocery delivery startup would succeed. it goes back to the spectacular failure. is grocery delivery something a big company will own? bob: i think so and i think the fact that amazon made the purchase of a grocery store first says something. i think that says groceries are a difficult thing to do online. people do a lot of random purchases when they are shopping for groceries, much more so than other categories. i think that is the reality of how people like to shop for food. i think that is difficult to overcome. amazon gets the benefits of real estate and warehousing and other kinds o

they rely on whole foods to, you know, go to instacart. you go on, within an hour you can get something delivered to your door. whole foods is one of the number one partners that instacart has to deliver to your home, and amazon saw that, and i think they saw an opportunity not only to bolster amazon for example but also, you know -- fresh, but also to take over this market that instacart had been owning. neil: i'm just saying, i've been talking to a lot of young, healthy people like yourself swearing by this, but you're all zombies -- [laughter] i know i'm comparing old movies here -- >> at least we'll be healthy doing it. organic, very healthy individuals when we jump. neil: you're a good sport and a very smart one who knows far, far more about this than i do. but i'm warning you, america and the world, jeff bezos is destroying the world. no, he's not, actually. i have no idea. all right, but can you imagine if they combined the rocketry with whole foods? well, the astronauts would be set for food. >>> all right, president trump, meanwhi

to work with the other 98% of the grocery stars in america >> my understanding on instacart is they whole foods for five years how is that going to get changed or not, i mean would amazon buy them out of that deal. what do you think is going to happen here? >> that's a good question for the ceo of instacart but i think my bet is on the fact that this has been a wake-up call to every other grocer that they need to be able to offer this kind of technology and service. >> your answer to this was, yes, with whole foods and with a lot of other grocers so your take was immediately, it's not our only business, right >> yes >> 10% of the business >> 10% of the business >> i -- i actually don't know. i've been in the country that whole foods represents less than% of all grocery steals. >> in terms of the companies you've invested in, are they mostly on aws in terms of the final platform >> a lot a lot. and i think that has been one of those things that a lot of companies basically five years ago sort of took for granted in tech because amazon was a first mover with a really great cloud produ

i would imagine instacart has lawyered up trying to fig are out, hey, we still have a deal here >> alot of the folks i spoke to are aware of the insta cart but it's prohibitive to them folks shopping at whole foods are very concerned about quality and they also want to feel their own fruit. they want to pick out their own meat that sounds silly -- >> i think fresh direct solved that >> but online grocery is only 2% of the total grocery market. there are a number of things -- >> maybe amazon bought whole foods because they realize people don't want to buy groceries online as much >> walmart has had a lot of success. >> so they can feel their own fruit. >> exactly >> and it does help some -- >> that sounds so weird. >> why is it weird when i say it but not weird when she says it >> yes it is >> courtney, stay right there. let's bring in patrick, the senior equity analyst with mkm partners he thinks target and others could be getting hit and this deal could spell trouble for them patrick, welcome back. who do you -- the market sold off everybody on friday because they're afraid they'll

there are a host of startups, instacart, postmates this deal is bad news for them now amazon has inventoryn >> carol, anyone else you pick up on the back of this deal? who are your favorites broadly speaking in the space? >> well, i e don't really love the space. i don't like grocery space because the margins are small and they are all struggling. stay with this deal, frankly there's no other combination that's the winner this will be i like to buy the winners. this is a winner >> clearly the market's conclusion we talked yesterday about all these companies with this strongest strategies, and the greatest sponsorship by the market are essentially crushing prices and making it good for consumers. >> right >> you have a deflation boom going on right now, and it's hard to see what gets in the way. interestingly in cvs, walgreens, people say if that's amazon's gain, they're not going to buy the guys, but disrupt them >> change the model. >> correct >> convenience stores on the back end >> dennis, where does that leave the shakeout that feels it has to continue across traditional retail space >

instacart, they're doing a round to bring food.ome economy i want to do grand theft auto while i order and drink, you know, constellation beer and play maybe i switch over for a second and do esports. oh, my god, ding-dong, there's the guy with the whole foods stuff from amazon. so this is another part -- i have to tell you, technologically, people don't want to hear it. people don't want to hear it, but i think that your fun is going to be bigger than ever and, you know, i don't think they're going to do private label manufacturing. they can completely re-imagine how to create food at a higher quality and lower cost for home delivery than everybody else they have that ability because they can be super cheap. home delivery is done for everyone else, you can't compete. can't compete. >> i like the way you were relaying that. >> i'm using my best, i've got everybody on this. you know, this is like all points bulletin. if you have info and i trust you and you're good, come to me right now. >> let's get to bob pisani quickly. we have a

and brick-and-mortar concept, we see things like it's a cart coming about that are helping -- in instacarts get that last mile of distribution. so i think they could be more competitive by focusing on the products that they offer as opposed to the composition -- competition with amazon is an online retailer from a distribution perspective. so i thinkwhere amazon is missik from an amazon fresh standpoint is that they do not have those physical locations to be able to distribute product that are those fresh products, as opposed to the shelf to table products. >> with caught up last week with talked totter, and we him about amazon and walmart, and the war that could occur in the coming months and years. this is what he had to say. >> i am not sure mark lawrence particularly competent at building online. he was a at setting up the domain names, diapers.com, soap.com, he tried jet and had a ton of money behind him. he had a whopping $1 billion in sales, compared to amazon's growth market value of 200 denton, so barely making a -- $200 billion, so barely making a dent in the online arena. >> rea