A shocking step was somewhat taken in the wake of the acquisition of the Whole Foods. Amazon has taken a wide jump into grocery items with the Whole Foods acquisition. It’s scaling down in the other parts of its grocery business.
Later in this month, Amazon Company emailed customers across five states on Thursday, in order to inform them that the grocery delivery service of Amazon Fresh will be closing in certain neighbourhood areas.
Amazon Fresh customers in parts of the New Jersey, Delaware, Pennsylvania, California, and Maryland have reported of the notices received, either in posts on social media or directly on Recode. Some citizens of big cities like Philadelphia and Los Angeles also reported about receiving a notification.
A spokeswoman of Amazon confirmed that the Fresh is ending the services in parts of these states, but also made clear about the fact that the services would continue serving in the areas of big cities like Boston, Chicago, New York, and also Los Angeles and Philadelphia, between other metropolises.
She stated that the changes weren’t related to the acquisition of Whole Foods, but rejected in providing more details.
Customers of Amazon Fresh currently pay $14.95 per month in integration to the prime membership of $99 program, which they must belong to. These customers of grocery segment can choose from a range of grocery items like frozen and fresh foods, along with some other general merchandise being delivered on the same day of orders made in the morning, or the next morning orders placed within a day.
The service of Amazon Fresh launched only a decade ago in Seattle, and didn’t enlarge to others cities for over five years. The slow roll out of the company reflected the challenges face in trying to make the economics work of delivery in grocery items, due to the different payment models the company experienced.
Amazon Fresh faced hurdles in expanding the service, whilst trying to make a dint in the grocery industry of $700 billion. It was largely seen as one impulsion in acquiring Whole Foods.
On a conference call with the Analyst of Wall Street, Amazon’s CFO said that over time there would be better cooperation among all the services from Amazon.