tl;dr: Amazon will "transform the Whole Foods supply chain into a service architecture based on primitives," using the stores as customers that guarantee a necessary level of scale.

I think this is basically true. Amazon will refactor Whole Foods' supply chain into something that serves both Amazon Fresh and the retail stores. This will allow Fresh to scale massively and dominate the category.

I would just emphasize that Amazon probably has more interest in Whole Foods then merely a guaranteed "customer". Whole Foods is bringing a lot of local supply chain relationships to the table.

But I agree 100% it's about the supply chain and not transforming retail stores into delivery hubs or anything silly like that. It won't hurt that the stores will freely promote Amazon Fresh and serve as great venues for sampling new products. But Amazon's goal here is to take over the category by massively scaling Fresh.