As the retailer looks to be shifting its focus towards brick and mortar grocery, source Recode has revealed that Amazon reportedly emailed customers in nine states to inform them that its AmazonFresh grocery delivery service will be closing in certain neighborhoods after November 30.
“We have made changes to our service area and discontinued delivery to select zip codes. AmazonFresh continues to serve customers across the U.S. (Seattle, New York, Boston, Baltimore, Philadelphia, Washington D.C., Chicago, Atlanta, Dallas, Miami, Denver, Los Angeles, San Francisco, and more) and internationally (London, Tokyo, and Berlin)” said an Amazon spokeswoman, according to the Albany Business Review.
Launching in Seattle over a decade ago, then waiting five years before beginning expansion to other cities, AmazonFresh's move this week alerted residents in New Jersey, Pennsylvania, Delaware, Maryland, and California, and now New York, Connecticut, Massachusetts, and Virginia of closures, Recode adds.
In a recent conference call with analysts, Amazon’s CFO Thomas Szkutak revealed that there would be more cooperation over time between Whole Foods, AmazonFresh, and the Amazon Prime Now one-hour delivery service. This news also comes days after Amazon unveiled plans to slash fees for indepedent grocery sellers operating on its main website, and increase its packaged grocery selection, as we reported on our sister site AndNowUKnow.
Despite what seems to be a slow rollout, Reuters reported Amazon has yet to make a major dent in the $700 billion U.S. grocery market, even after acquiring Whole Foods for $13.7 billion. While many think these moves might be hinting at a push towards brick and mortar grocery, a company spokeswoman confirmed that the AmazonFresh closures were unrelated to the Whole Foods deals.
AmazonFresh customers currently pay $14.95 a month in addition to the $99 Prime membership program, which gives customers access to a selection of fresh and frozen foods that can be delivered same day or next day.
Will Amazon continue to spread itself between e-commerce and brick and mortar, or will one segment arise victorious?Deli Market News will continue to report.