Amazon appears to experimenting with grocery deliveries in Seattle.The invite only service, which was highlighted by Michael Arrington at TechCrunch, is dubbed Amazon Fresh and promises a fresh selection, value and convenience of grocery shopping online.
Arrington makes the obvious comparison to Webvan and its flameout, but misses one key point: The online grocery model works and is being exhibited daily in New York City via FreshDirect. In fact, FreshDirect bought a big chunk of Webvan's equipment in a bankruptcy auction.
If this little Seattle experiment works out for Amazon can an acquisition of FreshDirect be that far behind?
I did a case study a few years ago on FreshDirect. It's an impressive operation that would tuck into Amazon nicely.