Amazon expanding its online grocery delivery service

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Seattle-based Amazon.com Inc. may be better known as an online e-giant, offering a smorgasbord of goods ranging from books to technology, but their newest venture expands their claim on the online grocery market.

AmazonFresh will soon been available outside of Seattle, Wash., for the first time since Amazon began testing the service in 2007. From milk to produce, meat to pantry staples, consumers in Los Angeles will be able to begin ordering as early as this week, according to Reuters. 

The service will be available in the San Francisco Bay Area by the end of the year.  It will also be available in 20 other urban areas in 2014, including several locations outside of the U.S.

But will it succeed?

"The fear is that grocery is a loss leader and Amazon will make a profit on sales of other products ordered online at the same time," Bill Bishop, a prominent supermarket analyst and consultant, told Reuters. "That's an awesomely scary prospect for the grocery business."

Read, “Amazon plans major move into grocery business.”

In 2011, Amazon.com worked to build its service by offering free milk for a year for new customers who placed an order during the promotion. And, as The Packer pointed out when AmazonFresh first launched, this isn’t the first time for Amazon to expand into grocery home delivery.  The company invested $42.5 million in Kirkland, Wash.-based HomeGrocer.com, which was eventually sold to Webvan.com.  WebVan.com eventually went bankrupt in 2001. Read more here.



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