EcommerceBytes-NewsFlash, Number 3126 - August 08, 2013     2 of 3

Amazon Fresh to Bite Big Apple in 2014

By David A. Utter

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Amazon's grocery delivery effort known as Amazon Fresh has been content to occupy a couple of test markets on the West Coast, in Los Angeles and Seattle. However, recent developments suggest Amazon Fresh may offer its services in New York City.

Analysis from Robert Peck at SunTrust strongly suggests Amazon will roll out its grocery delivery service in New York's metropolitan area sometime in 2014. Peck said Amazon has planned and financed expansion into a warehouse facility in New Jersey that previously housed C&S Wholesale Grocers.

"The facility will be less than 50 miles from all five NYC boroughs, southern Westchester, and most all of central NJ," said Peck.

This expansion would come about five years after Amazon's launch of Amazon Fresh. That Seattle debut was followed by a 2013 entry into the Los Angeles market.

One aspect of Amazon Fresh operations in Seattle that opened in late 2012 suggests an intriguing possibility for the New York area. Amazon expanded Fresh to include restaurant delivery for its Seattle customers.

That expansion took place in response to customer demand. With New York arguably as well-populated with quality restaurants as Seattle, it isn't unreasonable to wonder if Amazon might try out restaurant delivery in New York at some point.

Amazon of course could try pairing grocery delivery with its existing product lines too. A customer might be interested in tossing a Kindle into their virtual shopping cart along with some arugula, for example, and have them delivered together. The logistics for doing so look challenging, but Amazon has spent years developing their infrastructure and could be capable of accomplishing this.


About the author:

David A. Utter is a freelance writer based in Lexington, KY. He has covered technology topics from search to security to online business and has been quoted in places like ZDNet and BusinessWeek. He considers his appearance on NPR's "All Things Considered" with long-time host Robert Siegel a delightful highlight. Send your tips to media@davidautter.com and find him on Twitter @davidautter and on LinkedIn.


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