Print 14 comment(s) - last by phazers.. on Jun 7 at 3:23 PM

It could enter Los Angeles as soon as this week

Amazon has been testing a new grocery delivery service over the last five years, and now, it's ready to expand into more U.S. cities. 

Amazon's grocery service, called AmazonFresh, started out in Seattle roughly five years ago. The service allows Seattle residents to order their groceries online, and Amazon delivers the food via its own delivery trucks. 

Apparently, Seattle served as a successful trial run for AmazonFresh, and Amazon plans to roll it out to other cities. In fact, AmazonFresh could make its way to Los Angeles as early as this week, and the San Francisco Bay Area could see the service later this year. 

If all goes well, Amazon plans to expand AmazonFresh even further to 20 other cities in 2014 (including some outside of the U.S.). It's even looking to build freezers throughout warehouses to keep the food cold. 

Amazon is likely looking to enter a new market in order to keep growing. The grocery market could be a good plan, considering it made $568 billion in sales last year -- and not many companies have perfected the online grocery business. 

For instance, online grocery business Webvan -- which delivered products to customers' homes within 30-minutes of the time they desired -- went bankrupt in 2001. It was headquartered in Foster City, California and operated in the San Francisco Bay Area, Los Angeles, San Diego, Dallas, Orange County, Chicago, Seattle, Portland, Atlanta and Sacramento. 

Some worry that Amazon could run into trouble with the grocery business, considering the fact that food expires quickly and delivery can damage items. 

However, AmazonFresh has been through a five-year trial, which was likely a learning experience for the company. Also, Amazon will likely deliver higher-margin merchandise like electronics along with the low-margin food items, putting it in a better position than grocery items alone. 

AmazonFresh could hurt grocery chains like Kroger and Safeway, but it's not the only company currently attempting food and merchandise delivery. Wal-Mart is currently testing same-day and next-day delivery of groceries as well. Other smaller online grocery companies like FreshDirect (based in New York) and Peapod (based in Illinois) are established in the business as well. Peapod even operates in many U.S. cities. 

As Amazon opens more warehouses with proper refrigeration, AmazonFresh could also offer same-day and next-day deliveries in many cities. 

Source: Reuters

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Free publicity
By zhivaji on 6/5/2013 8:58:12 AM , Rating: 2

I fail to see how this is tech news.. This article sounds more like "Special advertisement" sections I find in car magazines.

P.S Special Ads are written as if it is an article in the magazine (car&driver or motortrend,i forget) with a note in corner indicating it is actually an Ad.

RE: Free publicity
By Reclaimer77 on 6/5/2013 9:24:59 AM , Rating: 2
I can sit at my computer in my underwear and have groceries, freaking food, delivered to my house, even frozen/perishable goods. And delivered FAST! Using my Amazon account no less.

And you don't think this is tech news???

RE: Free publicity
By SublimeSimplicity on 6/5/2013 10:37:34 AM , Rating: 4
I can sit at my computer in my underwear and have groceries

The future you painted is more disturbing in imagery then even Skynet.

RE: Free publicity
By Reclaimer77 on 6/5/2013 11:02:12 AM , Rating: 4
I was being kind lol. I'm actually naked at the moment. Come to think of it, the vast majority of my posts have probably been made while in my birthday suit.

Do you like that? :P

RE: Free publicity
By phazers on 6/7/2013 3:23:14 PM , Rating: 2
Come to think of it, the vast majority of my posts have probably been made while in my birthday suit.

Hmm, so you're an 11-digit typist?? :P

RE: Free publicity
By V-Money on 6/5/2013 5:02:56 PM , Rating: 2
This is actually great news. If they expand their delivery infrastructure using groceries this will most likely improve shipping times even more for their regular goods. You can be sitting on the john, realize that you are out of tp, order some with same day delivery, and while your at it add some groceries for dinner and a new game to play to celebrate the time you just saved :-)

RE: Free publicity
By highlander2107 on 6/5/2013 10:08:26 PM , Rating: 2
Logged in to call you stupid.


No, thanks.
By dashrendar on 6/5/13, Rating: 0
RE: No, thanks.
By MZperX on 6/5/2013 12:34:44 PM , Rating: 2
Well, to be honest shopping for groceries is, at least for me personally, a total non-value added activity that I only do because it has to be done. Without straining too hard, I can think of about a 1000 better ways to spend my time. I say this assuming that it would be affordable to order the stuff on-line and have it delivered to my house. I'd go for it for sure.

RE: No, thanks.
By BRB29 on 6/5/2013 12:51:40 PM , Rating: 2
I think there's no replacing going to the grocery store if you care about eating healthy and picking the best food.

Seriously, groceries takes about an hour per week.

RE: No, thanks.
By Spuke on 6/5/2013 4:01:01 PM , Rating: 2
I think there's no replacing going to the grocery store if you care about eating healthy and picking the best food.
Like the previous psoter, I HATE grocery shopping. I'd rather drive ice picks through my testicles than shop for food. God, what a demeaning, loathsome experience. There is most definitely a replacement for grocery stores and I, for one, welcome my AmazonFresh overloads.

RE: No, thanks.
By techxx on 6/5/2013 12:53:16 PM , Rating: 2
You're one of those people who will be surprised how successful this model could become. Anybody who values their time will consider using such a service. Remember, time is limited and wherever you're spending it means your not spending it somewhere else. I'm heavily interested in this service, especially if pricing is competitive and quality is high. Hate grocery stores, lines, etc.

RE: No, thanks.
By V-Money on 6/5/2013 5:28:35 PM , Rating: 2
You know that you would love anything that would save you time while giving you the same benefits. I bet once these are sold on amazon you will have one overnighted or same day delivery if possible...embrace the future :-)

By PrinceGaz on 6/6/2013 12:32:53 PM , Rating: 2
In Britain, three of the main four supermarkets already have well established home deliveries (and the other one will be starting shortly). Admittedly it is next day delivery, not same day, but you order online, choose when you want it delivered, and it arrives the next day (and you are free to reject any items you don't like for any reason).

Home grocery deliveries are old news here as they've been available in all non-rural areas for several years, from multiple competing providers which helps keep the cost down.

"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis

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