Nov 3, 2017

Amazon is scaling back grocery delivery in 5 states

An AmazonFresh worker delivers groceries. Photo: Joe Nicholson / AP

AmazonFresh customers in parts of New Jersey, Pennsylvania, Delaware, Maryland and California are complaining on social media of receiving notices that Amazon is suspending the grocery delivery service to their areas.

Recode reports that this scaling back of service is even affecting customers in parts of the populous cities of Philadelphia, Los Angeles.

The move is a bit of a head-scratcher, given Amazon's manifest belief that grocery delivery will be a big part of its business in the future, and it's possible it is just temporary.

  • Michael Pachter, Amazon analyst at Wedbush Securities, speculates: "I think Amazon is going to revamp Fresh altogether and move distribution closer to the customer via Whole Foods locations. They probably scaled back Fresh markets that were logistically difficult (meaning not close to a refrigerated fulfillment center or insufficient critical mass of customers), and will back fill those markets when they roll out delivery from Whole Foods locations some time next year."

"We have made changes to our service area and discontinued delivery to select zip codes," Amazon says in a statement. "AmazonFresh continues to serve customers across the U.S. (Seattle, New York, Boston, Baltimore, Philadelphia, Washington D.C., Chicago, Atlanta, Dallas, Miami, Denver, Los Angeles, San Francisco, and more) and internationally (London, Tokyo, and Berlin)."

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