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All Things D reports that Amazon seems ready to launch its AmazonFresh service in San Francisco next week, expanding it from its current operations in Seattle, where it started, and Los Angeles, where it was rolled out six months ago.

The speculation, the story says, is based "on information that AllThingsD received from a source, as well as several AmazonFresh truck sightings in recent days in San Francisco, and a recent job posting."

In Los Angeles, when the service was rolled out, Amazon offered Fresh as a free 90-day trial to Amazon Prime members. After a free 90-day trial, memberships were automatically upgraded from a Prime membership to a Prime Fresh membership and customers were charged $299 for the next year and annually after that. This included all the benefits of Prime, plus access to AmazonFresh.

In San Francisco, All Things D writes, Amazon will face competition from major etailers such as Safeway, Walmart, Google Shopping Express and Instacart, a Sequoia Capital-backed startup that recently expanded to Chicago, and was founded by a former Amazon employee."
KC's View:
No real surprise here … it was all a matter of "when."

I have to wonder if AmazonFresh is rolling out to San Francisco because LA is profitable, or because it feels ti needs to maintain momentum. I've heard some complaints in Los Angeles about product availability, and I think there is a reasonable argument to be made that the what they are charging for Prime Fresh memberships seems a little high. But I'm guessing that the folks at Amazon see a clear path to profitability and productivity … especially because they may only need Fresh to break even because Fresh customers tend to be high-use and profitable users of Amazon in general.

I'm only disappointed that there are no drones involved in the announcement.