Merchant Innovation

Amazon Fresh Adds Another Grocery Delivery Market

Amazon has a knack for quietly introducing its services into new markets, and last week it entered another East Coast market, Re/code reported Friday (May 8).

Amazon also has a knack for disrupting the grocery business, which is what the eCommerce market just might do in its new market of Northern New Jersey, where Amazon Fresh grocery delivery is now available. The report indicates that the service is now available in Northern New Jersey, including Hoboken, Weehawken, Jersey City, Newark, Paramus, Edison, Montclair and New Brunswick.

Amazon already offers grocery delivery in Brooklyn and Manhattan, which were recent additions in the past year — which taps into its New Jersey warehouse for much of its food delivery items. But the expansion across this particular market may show signs that Amazon Fresh may rapidly expand into other markets. When it started in the NYC region, it was branded as an experiment but, as the Re/code article points out, the expansion clearly proves that Amazon is continuing down its road to adding more markets to its Amazon Fresh service.

Amazon’s Fresh Express, technically, has been available since 2009 if one lived in Seattle where the service underwent extensive testing. The service expanded to Los Angeles in 2013 and across a few major metropolitan metro areas in 2013-2014, but made its first major coastal jump with a New York City launch in the fall of 2014.

A recent Bloomberg report on online grocery competitors shows that its Amazon Fresh grocery delivery business is paying off — for both the company and consumers. A recent report from Nomura Securities showed that online ordering for 30 of the same items was the cheapest on Amazon Fresh, when compared with Instacart and Peapod. Amazon is investing billions in new warehouses for same-day local delivery, and that may pose serious problems for its competitors, which typically partner with grocery chains to supply the actual products.

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