Amazon is offering home delivery of fresh groceries in the US to a third city in the country.
The online retailer has launched its AmazonFresh service in San Francisco. The move comes six months after Amazon rolled out the business, launched in 2007 in Seattle, to Los Angeles.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“AmazonFresh offers same-day and early morning delivery of a broad selection of items, including fresh grocery and local products,” the company said on its website.
“We’re branching out as fast as we can while being careful not to sacrifice the quality and convenience our customers expect from AmazonFresh.”
The online food retail market is less established than in parts of Europe. Neil Stern, senior partner at global retail consulting firm McMillanDoolittle, estimates online shopping accounts for less than 0.5% of total grocery sales in the US.
However, according to forecasts from IBISWorld, the US online grocery industry is expected to grow 9.3% per year to $10bn through 2018, compared with 1.2% growth each year from 2007 to 2012.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWhen Amazon launched the service in Los Angeles in June, reports claimed Amazon had plans to roll it out to around 20 other urban areas – inside and outside the US – next year.
Click here for a Talking shop analysis just-food published in June on the prospects for Amazon in the US online grocery sector, as well as forecasts for the growth of the channel as a whole in the country.
