So far it is just in the city of Seattle (hometown of Microsoft and Starbucks also, mind you) but Amazon steps forward offering a high-quality selection of fresh products. As TechCrunch points out, it is a new invite only service that looks eerily similar to the quintessential 90’s Internet flameout, Webvan. Webvan, which had a spectacular IPO and quickly expanded to 26 cities, went bankrupt in 2001. Before closing down, Webvan had acquired competior HomeGrocer. Coincidentally, Amazon was an investor HomeGrocer.
Last year, when I was living in Texas, I found out that food is extremely cheap in the US and also it is really great, all-styles, probably the best food in the world. But when it turns to high-quality fresh product, it was very expensive and preferred by a high-income customer (predominantly, white) target. The question is if Amazon Fresh will apply the Long Tail model to this customer segment and if it will be also succesful.
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