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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

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Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
RetailAmazonFresh

Here’s Where Amazon’s Grocery Delivery Is Going Next

By
Michal Addady
Michal Addady
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By
Michal Addady
Michal Addady
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May 24, 2016, 10:39 AM ET
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Amazon’s (AMZN) grocery service has been slow to expand since the online retailer began testing in 2007.

After a year and a half of not having launched in any new cities, Recode reports that AmazonFresh will be extended to Boston and the U.K. this year. AmazonFresh lets customers purchase groceries online, including perishable items like dairy, meat, and fish, which are delivered within a day.

The service is currently available in parts of California, New Jersey, New York City, Philadelphia, and Washington. Amazon had originally planned to launch in the U.K. last year, but some industry sources say that it was held up by a deal with British supermarket Morrisons.

As for its progression into other markets, there are more hurdles associated with AmazonFresh than the site’s other services that have slowed it down—the company needs to open refrigerated warehouses, carry its own stock of perishable groceries, and hire additional delivery people in each new market.

 

Keith Anderson, vice president at e-commerce analytics startup Profitero, says that each “local online grocery market is like a mini business unit” and, unlike Amazon’s other services, can’t be managed by people at headquarters. He added that it’s difficult to convince customers it’s worth the $299/year price tag.

Amazon is trying to grab a larger share of the grocery market with this expansion. Delivery services currently makes up less than 5% of all grocery sales.

Amazon could not immediately be reached for comment.

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