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Bloomberg reports on a pricing study by Nomura Securities International that says Amazon "was the least expensive grocery-delivery option in New York City, beating the closest competitor by $20 on a 30-item order."

According to the story, "In the pricing study, Nomura ordered 30 grocery items -- including green seedless grapes, Eggo whole-wheat waffles and a 2-liter bottle of Coca-Cola -- from competing New York delivery services Amazon Fresh, Instacart Inc., Peapod Inc. and Fresh Direct Holdings Inc. The order cost $122.03 from Amazon Fresh, which included a $5 tip. Instacart, with the order placed through partnering grocer Fairway, came in $20 higher at $142.86. Fresh Direct was the most expensive, at $158.74."
KC's View:
This is not a 'there can only be one winner" scenario. There are going to be a lot of different plays in the e-grocery business ... some folks are going to stress price, some will focus on speed, and others will focus on prepared foods. Some, of course, will try to do all three, or define some other advantage and niche.

But I do think that this study at least suggests why traditional food retailers, especially those in markets large enough to commend Amazon's attention, need to be concerned about the expansion of Amazon Fresh. Amazon has been building distribution centers all over the country, can easily make these compatible with its Amazon Fresh business, and certainly seems to have the internal motivation to move quickly, efficiently, and effectively.