Dive Summaries:
- As Amazon expands its at-home grocery delivery service, AmazonFresh, it is continuing to take things slow to avoid the fate of '90s home grocery deliverer Webvan, which collapsed in 2001 following its IPO.
- Four former Webvan executives are on staff at Amazon, which also owns the Webvan name and web presence.
- Amazon's grocery strategy includes limiting the delivery service to high-density urban areas, maintaining an efficient warehouse strategy and utilizing the robotic workforce of Kiva Systems, which it purchased last year.
- The company is eyeing the San Francisco Bay Area for its next grocery expansion later this year before spreading to 20 more markets next year.
From the article:
Amazon is moving deeper into at-home grocery delivery with AmazonFresh, which is expanding to L.A. as of last week, and which is set to continue to roll out to further markets over the course of this year and beyond. But it learned to take things slow from Webvan (the name and web presence of which it now own), the famous home grocery delivery flare-out of the 90s, and also to limit delivery areas to only high density urban areas, and to pursue as efficient a warehousing strategy as possible, according to a new Reuters report. ...