Walmart and Amazon Clash with FreshDirect in New York Food Fight
FreshDirect is still the dominant grocer in New York, but it’s starting to lose market share to deep-pocketed rivals.
For many years, FreshDirect has ruled the online grocery business in New York. In a city where most people don’t own cars, the company prospered by delivering a broad selection of fresh food to New Yorkers’ stoops and front lobbies. Families from Brooklyn to the Upper West Side came to rely on FreshDirect’s prepared meals, which were a snap to heat up and went down easy. Profitable, a rare feat in this corner of the web, the company kept expanding—adding new products to its website, rolling out same-day delivery of some items and opening a new fulfillment center that was supposed to cement its dominance.
In recent months, however, New Yorkers have found reason to go elsewhere. FreshDirect’s expansion has been bumpy, with more than a few deliveries going astray and once-loyal customers griping on social media. Meanwhile, four deep-pocketed rivals have set their sights on New York.