![]() "Food is the largest single retail category that exists," Ackerman said. Over fresh-baked croissants, chips, guacamole and cheeses from local farmers, he said in an interview in his office that there's more than enough room for more competition. ![]() Read More 5 restaurant apps that turn the table on diningįreshDirect's 47-year-old CEO Jason Ackerman isn't worried. To survive, FreshDirect will have to have selection, delivery speed and the ability to match prices with Amazon-not only keep prices low but reduce them even further if it wants to stay in the game, Peck said. That's why you see AmazonFresh," Peck said. "Whoever has the best choices and can deliver the fastest will have the competitive edge. Peck said the differentiating factors in the online food-delivery war will be food selection and fees and not current market share. The prime example of how far the online grocery trend is extending is on-demand car start-up Uber, the most richly valued start-up in the U.S., which announced in April that it was introducing a food service in New York and Chicago, pledging to deliver meals to customers in 10 minutes or less. They've become carriers, and food gets more complicated," said Robert Peck, a tech-sector analyst for SunTrust Robinson Humphrey, who has focused on Internet companies for more than a decade. Food-delivery start-ups, including Instacart and Blue Apron, have been valued in the billions.Īnd in maybe the biggest shift, "We're starting to see this on-demand economy where players you might not even consider in the space can be in the space. Tech giants from Amazon to Google are vying for a piece of the online food-delivery business. It also delivers across many Eastern and Midwest states. ![]() The Peapod service, owned by supermarket holding company Ahold USA (Stop & Shop, Giant Food Stores)-and which has an even longer history than FreshDirect-is delivering to all five New York City boroughs and opening a new warehouse last summer to double its service capacity. Wal-Mart Stores -which generates half of its business from food-has been testing the online grocery concept, in markets such as San Jose, California Bentonville, Arkansas Phoenix Denver, Colorado and Huntsville, Alabama. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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