Amazon.com, Inc. (NASDAQ:AMZN) has announced that it will use the US Postal Service (USPS) for delivering meat, dairy products and other groceries to customers in San Francisco Bay area. Amazon.com, Inc. (NASDAQ:AMZN) is already working with USPS for Sunday deliveries. Fox Business’ Liz MacDonald reported on the news.
“Amazon.com, Inc. (NASDAQ:AMZN) is testing out AmazonFresh, in twenty urban areas now. The Wall Street Journal reporting that Amazon is pairing up with the US Postal service to do small package grocery deliveries in the San Francisco Bay area, those deliveries will occur between 3 a.m. and 7 a.m., so the wee hours of the morning […],” said MacDonald.
MacDonald added that the important matter to look here is that whether Amazon can give a lifeline back to the US Postal service or not because the postal service has been undergoing bad times since many years. MacDonald said that losses of the US Postal service doubled this year as compared to the last year.
Currently, Amazon delivers groceries via its AmazonFresh units in Seattle, Los Angeles and San Francisco. The current deal will continue for a two month trial period after which, Amazon.com, Inc. (NASDAQ:AMZN) will decide whether to continue with the USPS or not. Postal Service was quoted as saying by the Wall Street Journal that they are currently testing AmazonFresh deliveries in certain areas to weigh the feasibility of the deal.
Amazon.com, Inc. (NASDAQ:AMZN) has higher risks in grocery markets as it is highly overcrowded space and competitors like FreshDirect LLC and Peapod LLC are already delivering groceries in New York, Chicago and Philadelphia where they have a strong and established customer base. Amazon.com, Inc. (NASDAQ:AMZN) is eyeing for exploring new ventures, despite of all the risks involved.
Ken Fisher’s Fisher Asset Management is a large shareholder of Amazon.com, Inc. (NASDAQ:AMZN), having over 2.47 million shares of the company.
Disclosure: None
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