AmazonFresh, $AMZN 24H Grocery Delivery Service, Launches in Boston

AmazonFresh, $AMZN 24H Grocery Delivery Service, Launches in Boston

Amazon’s (AMZN) online grocery delivery service, AmazonFresh, recently announced yet another expansion, a year and a half after its launch. The service arrived in London at the beginning of June and is now planning on launching in Boston, Massachusetts. The city joins other AmazonFresh markets in the United States, including Seattle, Northern and Southern California, New York Metropolitan area, North New Jersey, Philadelphia metro, Stamford Connecticut, and Baltimore Maryland. In Boston, AmazonFresh will deliver to Charlestown, Beacon Hill, Back Bay, Jamaica Plain, Brighton, Allston, and a few others.

Amazon customers can use the delivery service to shop for their groceries online, for products such as dairy, meat, fresh produce, and prepared meals. There are over 95,000 items available on the website, all of which can be delivered on the same day if orders are placed by 10am, or next-day if ordered later. If the order is placed by 10PM, Amazon promises delivery by “breakfast time” the next morning. Shoppers also have the luxury of choosing between unattended or attended two-hour delivery windows. Boston customers can choose to shop from local markets as well, including Savenor’s Market, Chestnut Farm, and the Commonwealth Kitchen.

The only unchanged part of the service is their pricing. The company is making customers subscribe to “Prime Fresh”, an upgraded prime membership that offers all of prime, but costs $299, $200 more than the current cost of prime. Meanwhile, AmazonFresh’s competitors such as Shipt, FreshDirect, Instacart, and Peapod, tend to make money but marking up the prices on groceries, Amazon is sticking to their well-known subscription service as a way to charge their customers. Instead of partnering with local grocers like their competitors however, Amazon is investing in refrigerated warehouses and inventory. This shows their ability to expand at a quicker pace than companies such as Walmart. Their Boston warehouse alone is 12 million square-feet large. Customers can register for Prime Fresh accounts starting today, and expect deliveries to start soon.

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