Amazon Unveils Groceries Pickup Service

U.S. e-commerce giant Amazon.com, Inc. shows its ambitions in groceries business by testing new drive-in-type pickup service.

Amazon.com, Inc. (NASDAQ: AMZN) announced that it is testing a service for Prime members called AmazonFresh Pickup, which is a drive-in-type grocery store for prime members to pick up meats, bread, dairy and fresh products they order online.

AmazonFresh Pickup is now available in two Seattle locations. It allows customers to order groceries online, set a time for pickup and have them loaded into their car at the store. Prime members can get free, unlimited puck-up orders and AmazonFresh members can have orders ready as soon as 15 minutes after they place the orders.

"This model often makes more sense in suburban areas, as the delivery model is often too expensive to execute given the lower population density…It can also be convenient for customers to schedule their grocery pickup window when they're getting off of work or some other routine time." Citi analyst Alvin Concepcion wrote in a recent research note, reported by CNBC.

Amazon shares hit its new 52-week high on Wednesday.

Fresh food is the one of the hardest segment for retailers. The biggest rival in the market is Wal-Mart, who has the similar fresh pickup service for customers. The service has helped Wal-Mart kept its recent sales momentum.

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