AmazonFresh Makes L.A. Debut

SEATTLE — Amazon.com here confirmed Monday it has expanded AmazonFresh, its online perishable-grocery delivery program, to certain ZIP codes in Los Angeles — its first expansion outside its home market.

For customers who order more than $35 worth of groceries by 10 a.m., Amazon said it will offer same-day delivery by 6 p.m.; to customers who order the minimum by 10 p.m., it will deliver by 6 a.m. the next morning. Amazon said customers have the option of "doorstep delivery," in which orders are placed in sealed, temperature-controlled tote bags at a home; or "attended delivery," in which tote bags are delivered in person. The company said attended delivery is required for certain items, such as alcohol.

Read More: AmazonFresh Seen Impacing Grocers in Long Term

According to the company, customers must be part of Amazon Prime to take advantage of AmazonFresh. Amazon will make its delivery service available free of charge to Amazon Prime members for a 90-day trial, after which they will be upgraded to a Prime Fresh membership and charged $299 for the folllowing 12 months and annually after that. The charge includes a $79 fee for Amazon Prime membership, which offers members other discounts, such as free two-day shipping and access to the Kindle lending library.

Sources said the $299 price might dissuade bargain shoppers, which would keep the user base from expanding too rapidly while enabling Amazon to handle the delivery business it gets.

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In addition to produce and other perishable groceries, AmazonFresh also offers product from local purveyors including Santa Monica Seafood, The Huntington Meats and The Cheese Shop of Beverly Hills.

The company's homepage was updated Monday with news of the expansion of AmazonFresh to Los Angeles, which had been reported last week by SN and other media but never confirmed by the company. Amazon also updated the mobile applications for iOS and Android.

Observers said they expect AmazonFresh to expand to San Francisco later this year and possibly to 20 other cities over the next two years.

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