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AmazonFresh working with US Postal Service to deliver groceries
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Sep 8, 2014
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AmazonFresh working with US Postal Service to deliver groceries
AmazonFresh and the United States Postal Service are teaming up to test delivering grocery goods to customers. How is this service doing and what could it mean for the US Postal Service?
An AmazonFresh truck
AmazonFresh is partnering with the US Postal Service to deliver grocery goods to customers.
(
Flickr/leff
)

AmazonFresh and the United States Postal Service are teaming up to test delivering grocery goods to customers. How is this service doing and what could it mean for the US Postal Service?

These days, with busy schedules, it's often tough to find time to get to the supermarket.

That's why many consumers rely on food delivery services. 

Amazon has been a big player on this front with its AmazonFresh services.

And now the online retailer is trying out something new -- teaming up with the US Postal service to deliver fresh produce, meats and other groceries.

Through its AmazonFresh unit, the e-commerce giant currently delivers groceries in its hometown Seattle, as well as Los Angeles and San Francisco, the Wall Street Journal reports. 

The two-month test of the service could provide a much-needed boost for the USPS, which is actively trying to compensate for ways the Internet has decreased its business, according to the WSJ.

Wall Street Journal Reporter Greg Bensinger has been looking into this and shares more on how AmazonFresh is doing and what a partnership could mean for the USPS.

INTERVIEW HIGHLIGHTS

How big is the AmazonFresh grocery delivery right now and why are they doing it?

There are indications it will be in New York next. Amazon looks at this as a strategic initiative—a way to get more people spending money on Amazon. When you consider how much people spend on groceries it's probably a smart thing.

How does the service work?

They are arriving at homes early in the morning when the USPS trucks are otherwise idle. So it's a way for them to work while they're idle and hopefully drum up some revenue.

What does the landscape for this type of business look like?

There are a lot of big players, not to mention startups taking advantage of existing grocery stores. It's real competitive. There's going to be winners and losers. We'll see.

Does Amazon potentially have an edge because customers can order a vacuum cleaner or books or DVDs or whatever at the same time they're ordering their peas and carrots?

That is a compelling offer. Imagine ordering dinner and the DVD you wanted to watch. Amazon does potentially have a leg up but one of the things customers have to weigh is what is the price of this? Is it more or less expensive than going to a grocery store yourself and what do you save in terms of time and money?

Any thoughts on how Amazon plans to reduce all the packaging that comes with their delivery service?

They have not discussed that. It will be interesting to see what environmental groups have to say about it. There is a cost to you going to a grocery store in your own car and getting bags every time. Amazon uses reusable bags and presumably that is better for the environment than getting paper bags every time. We'll have to see how it pans out.