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Competition for Online Grocery Shopping Customers

There are regional companies that provide online grocery shopping service, but Amazon would like to expand its service to a more national market. 

| BY Kent McDill

For some, the word “market’’ means “grocery”. For some, the Internet is the new way to go to “market.”

AmazonFresh, the online delivery company’s expansion into grocery sales, has grown beyond the firm’s hometown of Seattle and into Los Angeles, with plans to go as far as possible with the delivery network available to it.

At the same time, Google is trying to get its own Google Shopping division to move into the grocery aisle.

According to the Wall Street Journal, AmazonFresh has been in business in the Seattle area for close to six years, providing grocery delivery service to homes for the cost of between $8 to $10, with the fee dropped for large orders. The deliveries can include produce, fresh meat and dairy, provided in insulated coolers with tight delivery windows so the food stays fresh. Many items can be received the same day they are ordered.

There is at least one national online grocery delivery service: has been in business since 1999. It offers delivery of perishable and frozen items, but the delivery schedule is between 3-7 days, depending on where you live. Most of the nation requires a week for deliveries to be received, and they are delivered by FedEx. 

No service has yet gone national in grocery delivery. Companies like Peapod and FreshDirect offer regional service in cities such as Chicago, Philadelphia and New York.

But Amazon believes its already created delivery infrastructure could make it feasible to create a national grocery delivery service, although the intention is to deliver items you might not find at the local grocer, like motor oil or electronics, which have larger margins.

Meanwhile, Bloomberg reports that Google is expanding its Google Shopping Express in test areas including parts of San Francisco, Los Angeles and New York City. Google is teaming with retailers affected by the success of Amazon, like Costco, Staples and Target, to build an audience for quick home deliveries, including groceries.



About the Author

Kent McDill

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.