Amazon Looking To Launch Same-Day Delivery Groceries In Bay Area

A lot of retailers are getting involved with same-day delivery for all types of products. Google is testing the service with everyday products from Target, American Eagle Outfitters and more. Wal-Mart is doing various items of same-day delivery in US cities and China, even offering same-day grocery delivery. This is a service retail giant Amazon is currently offering in its’ hometown Seattle, yet they now have their sights on launching the service in the San Francisco Bay Area.

The San Francisco Business Times has reported some recent findings via the Wall Street Journal that Amazon is preparing to begin same-day grocery delivery in the Bay Area. This same-day grocery service is known as AmazonFresh. The company now has a warehouse about 60 miles from San Francisco and San Jose. It appears they have positioned a location within a close proximity in order to provide the service. Amazon has had this service for over five years in Seattle and has recently launched same-day delivery in Los Angeles. It is no surprise the well-known retailer is expanding there.

Amazon has mentioned a number of job listings as the company gears up to operate in the Bay Area. They have positions available for quality assurance and research & development, which the company mentions that candidate will have to manage a large fulfillment network. To successfully tackle a new service such as this, Amazon is going to need some great people. The question is will they partner with  like A-1 Express to perform the actual grocery deliveries or will Amazon hire its’ own drivers.

Amazon isn’t the only company implementing same-day delivery for groceries in the Bay Area. Wal-Mart is doing it already. Also, Instacart and PostMate have their hand in the jar and offering same-day grocery deliveries. Amazon is leading the pack regarding the emergence of online retail and is growing at a fast rate. Physical retailers like Target, Best Buy, Macy’s, Staples, and others have all jumped in as well to increase their store sales by creating an outlet for selling online. The e-commerce industry is growing at 16% per year and may growing at 17% by year’s end. There is the reason for investing in producing sales where most people hang out, which is online.

One thing is for sure, retailers must have found a certain niche that same-day grocery service will provide in the coming years ahead. Same-day delivery is an innovative service; however, some experts do not think it is sustainable. The price to make it attractive to shoppers can not continue and will end up costing retailers a lot more than they’ll end up making. This will result in inevitable service cost increases for the customers, which will in turn, drive shoppers back to brick-and-mortar retail store locations.

Regardless, same-day delivery of groceries appears to be a great fit because it benefits the customers relative to their time and having to commute to the physical store themselves. Customers may not mind paying an additional charge along with their grocery bill because it makes sense. A-1 Express is a San Francisco Courier that can team up with retailers to implement a sound same-day delivery grocery solution.

Reference: 10.8.13, San Francisco Business Times, Renee Frojo, Amazon moves toward same-day grocery delivery in Bay Area