Seeking Alpha

AmazonFresh launches in San Francisco

  • As rumored, the AmazonFresh (AMZN -0.7%) same-day/grocery delivery service is launching in San Francisco. The $299/year service, which launched in L.A. in June and has been in Amazon's hometown of Seattle for some time, promises same-day or early morning delivery for 500K+ items for $35+ orders.
  • With high population density and per capita income levels, and a very tech-savvy customer base, S.F. is a logical expansion market for AmazonFresh, which has been dubbed a "Trojan horse" meant to underpin Amazon's same-day delivery efforts. An NYC launch might happen in 2014.
  • Google and eBay have already launched same-day services in S.F. Unlike Amazon, both companies are relying on partnerships with retail chains.
Comments (12)
  • AmazonFresh must be doing fairly well for them to be going ahead with expansion into other cities.
    11 Dec 2013, 01:52 PM Reply Like
  • The slow expansion tells otherwise, along with Jeff Bezos "5 years to try and make it profitable". The "make it profitable" problem seems to have been solved with the $299 subscription, but obviously making people pay $299/year for the right to buy groceries is not going to fly very far.
    11 Dec 2013, 02:36 PM Reply Like
  • Were I in Bezos shoes, would launch a "before-day delivery", shipping items before collecting the order.
    11 Dec 2013, 02:58 PM Reply Like
  • He's already doing that with the Kindle Fires ... eheh.
    11 Dec 2013, 03:04 PM Reply Like
  • I give up, Bezos is unmatchable.
    11 Dec 2013, 03:07 PM Reply Like
  • ANY expansion tells it is off to a good start. This is common sense.
    11 Dec 2013, 03:11 PM Reply Like
  • How do you figure that Gary J when the only metric they care to improve on is revenue since that's what the rising stock price has been in sync with.

     

    Don't worry all good things come to an end.
    11 Dec 2013, 04:51 PM Reply Like
  • You answered in the same sentence as the question! As the CEO says they currently want to maximize revenue. Too much profit would mean they are off course. A difficult concept for some, I know.
    11 Dec 2013, 05:03 PM Reply Like
  • Jeff didn't say he wanted to maximize revenues.
    11 Dec 2013, 05:26 PM Reply Like
  • $299 sub fee is ridiculous. I think this will mainly appeal to people rich enough to hire a personal assistant to do their chores like pick up dry cleaning and groceries. Now those folks can save a few bucks since $299 a year is cheaper than having an assistant on call. Notice this service seems to be only expanding in cities with a sizable population of affluent tech or media elite.
    11 Dec 2013, 03:18 PM Reply Like
  • All correct! Except the 1st sentence which contradicts the rest of it! Plenty of money to be made in niche markets - ask Whole Foods, BMW, Nike, IMAX, etc.
    11 Dec 2013, 04:12 PM Reply Like
  • AmazonFresh is like Ocado in England. Ocado is currently unprofitable.
    17 Dec 2013, 07:15 PM Reply Like
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