This has come as a surprise, after amazon took a huge leap into groceries with the acquisition of whole foods.
Amazon is ending its Fresh grocery delivery service for select zip codes, though it continues to operate in a range of cities from Los Angeles to Tokyo. This has come as a surprise, after amazon took a huge leap into groceries with the acquisition of whole foods.
AmazonFresh deliveries will stop for some people after Nov. 30, according to company’s emails to customers in at least five states including New Jersey, Pennsylvania, Delaware, Maryland and California. The news comes after the online retailer’s $13.7 billion acquisition of Whole Foods Market, which is expected to play a key role in Amazon’s grocery delivery going forward.
However, it seems the changes are unrelated to the Whole Foods acquisition.
The Amazon Fresh service first launched about a decade ago in the Seattle area, and didn’t expand to other cities for more than five years. The company’s slow rollout showed the challenges of trying to make the economics of grocery delivery work as the company experimented with different payment models.
Amazon is also trying to increase its packaged grocery selection on its main website by lowering the commissions it charges sellers.
