News

Amazon expands grocery delivery to LA

June 11, 2013

Amazon is taking another bite out of the grocery segment with this week's expansion of its same-day grocery delivery service to Los Angeles, according to Wired.

Also announced was a new version of Amazon Prime — Amazon Prime Fresh. The service promises unlimited same-day or next-day early morning delivery of more than 500,000 items, including groceries, for $299 annually.

But according to Wired, Amazon must precisely calculate its math in order succeed at grocery delivery:

Succeeding at groceries alters everything else because groceries are the toughest delivery problem to solve. Figure out the math on groceries and the ability to deliver nearly anything else on the same day—books, electronics, baby wipes—becomes a given. That's because the logistics of grocery delivery are uniquely challenging, say supply chain experts. Amazon is rolling out its experiment in groceries slowly because getting them wrong risks a spike in customer mistrust that would undermine the company's tightly tended reputation for unwavering competence.

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