Financial Times: Amazon Ready to Deliver Groceries Nationwide
When you read the description of the AmazonTote grocery
service, it’s hard not to wonder, what’s the catch?
"AmazonTote is a free weekly delivery service from Amazon.com. There
are no subscriptions, minimum delivery sizes, or fees. Items delivered using
AmazonTote will be brought to your doorstep in a reusable tote bag, free of
According to the Financial Times, Amazon is planning to
expand the Tote service "company wide" from its Seattle home market.
While an exact date was not given, an announcement on the site that was later
taken down said it would be "expanding soon." Amazon began testing
AmazonTote last summer with the same trucks it uses with its pilot AmazonFresh
"Because of the frequency of grocery purchases … you have an opportunity
to be in front of the customer at least once a week," Rich Tarrant, CEO
of MyWebGrocer, told the Financial Times. "By tying in that frequency
with the ability to get everything else you want, you literally have created
the virtual Walmart."
Fiona Dias, executive vice president for GSI Commerce,
told The Wall Street
Journal, that regularly weekly deliveries could potentially lead Amazon
customers to add other non-grocery items to their basket, as well.
"What they want to have is a truck come to your house once a week to deliver
whatever you want in it," Ms. Dias told the Journal. "You
never have to leave your house to shop again."
- AmazonTote – Amazon.com
- Amazon steps up groceries push – Financial Times (reg. required)
- Amazon.com expanding free, weekly delivery service – The Seattle Times
- Amazon May Expand Free Home Delivery – The Wall Street Journal
- Amazon to Roll Out Grocery Delivery Service – Mashable
Discussion Questions: What is your reaction to Amazon expanding the Tote service “company wide?” What do you see as the opportunities and hurdles before Amazon if it is going to deliver groceries beyond the Seattle test?