Report: Two major retailers eye FreshDirect
Amazon and Walmart are both reportedly considering a purchase of on-demand grocery delivery platform FreshDirect.
According to the New York Post, the two retail titans have been examining the financial and performance data of FreshDirect. The delivery service’s largest investor, J.P. Morgan, is reportedly seeking potential buyers following its move to a new distribution facility in The Bronx in 2018.
Since that time, the Post reports FreshDirect has been losing customers due to late and incomplete deliveries caused by difficulties integrating the technology at the distribution center with its front-end e-commerce software. Both Amazon and Walmart are said to have considered purchasing FreshDirect at least two previous times.
New York-based FreshDirect, which specializes in delivery of fresh food and groceries in the Northeast, launched a same-day delivery service in March 2019. At the time, the company said it was planning geographic expansion for late 2019 and early 2020.
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