FreshDirect is a relatively new company located in the northeastern region of the United States. FreshDirect specializes in online grocery retail, and they have two options for their customers to use. The first is home/work delivery, this method allows the customer to order their groceries online and arrange to have them shipped to their home or their place of work. FreshDirect has a $30 dollar minimum on orders being shipped to a place of residence and a $50 minimum on orders being shipped to a business, FreshDirect also charges a delivery fee based on the location to which the groceries are delivered1 2. The deliveries can be made as far as a week in advance and as soon as the previous day, they do not provide the option for same day delivery1 2. Also, it is worth noting that you must be present in order to receive your delivery, they will not leave your delivery at the location. They will attempt to re-deliver the groceries as soon as possible, but a $4.99 fee will be charged (regardless of when they re-deliver)1 2.
The second option they give their customers is the option to order online and pick up at their warehouse (site to store). In the site to store option, the customers place their order online, but instead of having it delivered to their home, they arrange a time to pick it up from the warehouse (located in Long Island3). The orders can be placed anywhere from one day to one week in advance4. There are not delivery/pickup fees charged and there is a minimum order of $304. Also, orders must be pre-paid. Customers have the option of looking at their groceries and can have their groceries loaded into their car free of charge4.
As I touched on previously, FreshDirect is located in Long Island and they serve the surrounding northeast area (parts of New York, New Jersey, Connecticut, Pennsylvania, and Delaware). There are a few other competitors in the area that directly threaten FreshDirect, but FreshDirect claims to have 80% of the market share in their territory6. Also, FreshDirect had sales figures of roughly $400 million in 2013, ranking as the top ecommerce grocer7, and are looking to increase those numbers through new customers in existing territories and new ones6. In October 2013 FreshDirect expanded to the Philadelphia area and is looking to expand to other areas within the northeast6. As more stores like Amazon and Walmart expand to online groceries, it will be interesting to see how smaller, more localized, companies like FreshDirect adjust.
[---Research by Connor Hawley, as part of the research team's series of reviews of ecommerce practices at different companies.]