After launching tests in Seattle and Los Angeles, Amazon Fresh is entering San Francisco. Users have access to an expanded Amazon range of more than 500,000 products, including fresh ranges and products from local suppliers, available for same day delivery.
Competition heating up online
San Francisco is proving to be a key e-commerce test market in the US. Over a year ago, Google set up a same-day delivery in the Bay area, testing the service with its own employees. From there, it opened a service to the public, currently offering same-day delivery from a range of national retailers including Walgreens, Whole Foods Markets and Target. Recently, Costco has also teamed up with the Google Express service. Walmart is also active in this area with the "Walmart–to-go" service, while innovative start-ups such as Instacart have also chosen the area as a base.
Online grocery relatively under developed in US
Compared to some of their European counterparts, US grocery retailers are lagging behind in terms of online grocery shopping. However, it is moving up the agenda and further development in this area remains a priority for many. Significant opportunities exist to invest and develop the channel, however it brings plenty of challenges. Retailers continue to test and learn in this space, trying different models in order to find the most effective fulfilment model from both a customer and cost perspective.