Amazon.com Inc.’s (AMZN) online grocery delivery program is set to debut in Brooklyn. This expansion will give Amazon access to one of the wealthiest and densest markets in the U.S.
The AmazonFresh program offers same-day or next-day delivery on more than 500,000 items, which also include fresh and frozen groceries.
With this move Amazon is targeting groceries, a segment that is yet to be altered by online commerce. Amazon refused to say if it has plans to expand its services to Manhattan or other regions of the New York metro area.
Amazon experimented with AmazonFresh in Seattle for five years before it expanded to Los Angeles and San Francisco in 2013. The New York metro area, however, has different logistical challenges, including a denser population.
Fresh can be accessed by Brooklyn-based members of Amazon's $99-a-year Prime program for free till the end of the year. After that, Amazon will charge $299 a year for its "Prime Fresh" program, which unites grocery delivery with free two-day shipping and other advantages of Prime.
Amazon faces competition from recognized enterprises like FreshDirect and fast-growing startups like Instacart.
Amazon currently holds a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Better-ranked stocks in this industry include Mercadolibre, Inc. (MELI), World Energy Solutions, Inc. (XWES) and PetMed Express, Inc. (PETS). While Mercadolibre has a Zacks Rank #1 (Strong Buy), PetMed Express and World Energy Solutions carry a Zacks Rank #2 (Buy).
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