Amazon is to launch an online grocery business in a bid to target retail sectors as yet saturated by e-commerce, according to Reuters.
Reuters reports two people familiar with the situation as saying Amazon has been quietly developing the new aspect of its business for years, with new warehouses to include refrigerated areas for food.
The company has been testing AmazonFresh in Seattle for at least five years, and plans to deliver groceries alongside higher margin products such as electronics. AmazonFresh is now set to expand from Seattle for the first time.
It is now set to launch in Los Angeles as early as next week and the San Francisco Bay Area later this year, according to the sources. If successful, launches will occur in 20 other urban areas next year, including some outside the United States.
