Amazon rumored to open drive-up grocery store

Amazon (NASDAQ:AMZN) is developing a new drive-up concept for grocery items, according to sources close to the e-commerce retailer. Located in Silicon Valley, consumers would order grocery items online, then schedule a pickup at a dedicated facility.

If confirmed, the project could also mean another new distribution strategy for Amazon, while giving it a stronger foothold in the online grocery competition.

Online grocery shopping is now up 29 percent from last year with a rapidly growing number of grocery delivery services such as Instacart, Peapod and FreshDirect, which now compete with Amazon Fresh. Amazon Fresh has grown itself and is now delivering in parts of New Jersey, Brooklyn and Manhattan.

The first pickup location is rumored to be in Sunnyvale, California, according to the Silicon Valley Business Journal. A developer has summated plans for a 11,600 sq. ft. building and grocery pickup area. While Amazon is not named on the documents, real estate sources said the e-commerce company is likely a tenant.

Amazon would not comment when contacted and city officials said they could not confirm a tenant's identity.

Amazon is still lauding the success of its first Prime Day earlier this month, which—in one day—brought in 18 percent more sales than Black Friday 2014, previously the strongest year-over-year in Amazon's history.

For more:
-See this Silicon Valley Business Journal article

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