The already crowded grocery store segment may soon face another challenge--home delivery by Amazon. Amazon has been delivering fresh foods such as eggs to customers in its home base of Seattle for about five years, but it now plans to expand the service to other markets, starting with Los Angeles and San Francisco, and eventually rolling out in as many as 40 cities, according to Business Insider. The company aims to improve its profit margins on food products by using the same facilities and equipment to deliver its non-perishable products, such as electronics.
So is this a real threat to supermarkets and warehouse clubs? Or a possibility for disaster? Currently, it's unknown whether Amazon's food delivery program in Seattle is profitable.