AmazonFresh prepares to take on US east coast

Date : 29 September 2014

Amazon is reportedly set to begin AmazonFresh grocery deliveries in New York, its first move to the US east coast. According to insiders the company could be set to roll out the service as early as next month, where it will compete with existing online retailers including FreshDirect, Peapod and delivery service Instacart.

New Jersey distribution centre

Amazon has been preparing inventory in a warehouse in Avenel, New Jersey, a location around 20 to 25 miles from Manhattan. From there it is thought that the company could also target customers in New Jersey and Philadelphia over time, according to Re\code.

Model optimisation

Amazon has been slower than initially anticipated to roll out its AmazonFresh grocery service and seems to be pursuing organic expansion as it works to optimise its model. The company recently partnered with the US Postal Service to help deliver small grocery orders as part of a pilot in San Francisco.

Investment in innovation

Meanwhile Amazon is reportedly set to increase staffing at its Lab126 development division by at least 27% over the next five years, according to Reuters. The Silicon Valley facility is where Amazon develops new hardware such as its Kindle e-reader and Fire smartphone. Amazon will invest USD55 million to develop operations. According to insiders the new focus will be on wearable devices and simpler ways to add FMCG products to shopping lists by pressing a single button. In a statement Amazon said that Lab126 was growing “very quickly”.