Report: Amazon To Expand Grocery Delivery Service To San Francisco

Amazon (Nasdaq:AMZN) is expected to expand its AmazonFresh grocery delivery service to the San Francisco area this week, according to multiple reports. The service will provide customers in the Bay Area with same- or next-day delivery of fresh produce, dairy, meats and other grocery items.

Amazon has been testing grocery delivery in Seattle since 2007 and expanded the service to some parts of Los Angeles in June. The AmazonFresh service costs $299 per year for members. In addition to ordering grocery items online, AmazonFresh customers can add some local and items to their order.

San Francisco residents have reportedly seen AmazonFresh trucks driving around various neighborhoods, although Amazon has yet to confirm the expanded service. Industry insiders say the announcement will be released on Dec. 10. If that's true, the e-commerce giant enters a territory where delivery services currently offered by Google Shopping Express, Walmart, Safeway and Instacart have already found success.

The move comes as Amazon seeks to further innovate and stay in the lead when it comes to online retailing. Recently, the company announced that it wanted to be the first to offer same-day delivery via flying drones, which would be able to transport packages weighing 5 pounds or less within a 10-mile radius of an Amazon fulfillment center.

For more:
-See this All Things D article
-See this GeekWire article

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