AmazonFresh first launched in 2007 and has been a been greatly talked about with in the business news media.
AmazonFresh initially provided home grocery delivery to homes located in the Seattle suburb of Mercer Island through an invitation-only beta test in August 2007. It has since enlarged to a number of Seattle-area ZIP Codes, including the suburbs of Kirkland and Bellevue. On June 10, 2013, AmazonFresh added additional cities by widening it’s reach to portions of the Los Angeles area, offering “free same-day and early morning delivery on orders over $35.” Additionally, the service opened in San Francisco on December 12, 2013.
Online grocery shopping could be seen as big of a change as Amazon.com brought to the book publication industry. Many brick and mortar businesses, such as Safeway, are expanding into online sales as they see the industry changing.
Here is a link to the article which contains the quote (see below) from Manfred Bluemel, PhD:
“If online orders also include higher-margin general merchandise such as digital cameras, then AmazonFresh has a chance at profitability,” said Manfred Bluemel of Zeitgeist Research, who was head of market research worldwide at Amazon until late 2010. “Grocery is a frequency business. If Amazon can deliver to consumers’ homes two or three times a week, they can up-sell other items,” he said. Bluemel said AmazonFresh’s expansion will likely focus on areas where Amazon already offers same-day delivery, or will do so soon.