Amazon to End AmazonFresh Delivery Service in Some Areas

Amazon.com is ending its Fresh grocery delivery service for select areas, though it will continue to operate in more than a dozen cities. Reuters reports AmazonFresh deliveries will stop for some people after Nov. 30 in suburban Pennsylvania and New Jersey, according to messages sent to customers. AmazonFresh started more than a decade ago, but has yet to make a large dent in the U.S. grocery market.

Total Retail’s Take: This announcement doesn’t come as a big surprise. Since acquiring Whole Foods this summer, Amazon has been focusing its grocery efforts elsewhere. AmazonFresh’s sales have dwindled in an increasingly competitive market for home grocery delivery, meal delivery services and local CSAs picking up traction. In addition, it looks like Amazon will be turning its attention to larger urban areas, keeping services available in cities such as L.A. and Tokyo. I predict this may be the first step to moving towards a Whole Foods delivery service in 2018.