AmazonFresh Cuts Back to ‘Select Zip codes’

             Amazon recently announced in The Settle Times that they would be “narrowing the range of its AmazonFresh grocery delivery program, cutting service in at least nine states”. Economically, AmazonFresh has had major difficulties. Amazon is trying to balance the cost of the service with consumers, many of whom are already paying a yearly fee. In addition, many people are demonstrating a desire to remain loyal to the brick-and-mortar experience. The demands of managing a delivery grocery service have caused Amazon to restructure their role in the industry. In an article in Supermarket News “AmazonFresh Exits Several Geographic Areas”, analysts suspect that they are making cutbacks to in the future integrate Whole Foods.  However, for the time being, it seems that Amazon has not yet been able to make much money in the grocery industry.

            Amazon has made its money in online shopping. While they hope to bring that same spirit to the grocery industry, it is clear from the consumer feedback and industry trends, that the public is simply not ready to move away from the experience of their local supermarkets. Eventually, analysts believe that Amazon will move to have Whole Foods become centers of e-commerce food shopping, this may be the integration needed to move people towards the online sphere. Only time will tell if Amazon will reach any economic success in this market.