Earlier this month Reuters reported that Amazon is planning a major expansion of its online grocery service. According to the report, the expanded service will start in California and then possibly expand into 20 urban markets. And according to Globe Street, a national supermarket analyst says Amazon could be targeting 40 markets.
Amazon is no stranger to the grocery delivery business as it's been operating AmazonFresh for several years in Seattle, where the company is headquartered. In March, KTR Capital Partners, Amazon's development partner, acquired a 900,000 square foot complex in Woodbridge, NJ that it will renovate for Amazon. The facility was previously owned by C&S Wholesale Grocers.
Currently, Peapod, which is owned by Ahold (Giant, Stop & Shop), calls itself the largest online grocer. It serves more than 8 million households in the Northeast.