Amazon Rolling out Grocery Delivery in More Cities

Forget the drones the real game changing concept from Amazon.com

could be grocery delivery. The online retailer has expanded its AmazonFresh grocery delivery service into the San Francisco Bay area, the All Things D blog reported. Amazon has been experimenting with same day grocery delivery in Seattle for about five years and has been testing the service in Los Angeles for about six month. Fresh involves the use of a distinctive looking green truck similar to a UPS van to deliver a wide variety of items on a same day basis. The items delivered include fresh fish and produce, and almost anything available in an Amazon distribution center. To take advantage of the service customers will have to live near the distribution center and pay $299 annual fee to Prime Fresh. Items will have to be ordered by 10 a.m. on a weekday for same delivery. Challenging Kroger This service puts Amazon.com in direct completion with Kroger Co.

which has been offering Kroger Home Shop a similar online service in many areas of the country for years. Kroger has done very well in the last few years its TTM revenues grew by nearly $19 billion between October 2010 and October 2013. In October 2010, Kroger had revenues of $80.72 billion, and in October 2013 the company reported revenues of $99.42 billion. It is not known if other retailers such as Wal-Mart Stores Inc.

, Safeway

, Target

and Costco Wholesale

will follow Amazon.com and Kroger into home delivery. If successful, Amazon.Fresh could be a threat to all of those retailers.