FreshDirect Said to Be for Sale
Online grocer FreshDirect is looking for a buyer just a year after moving to a new fulfillment compound in the Bronx, according to the New York Post.
Amazon and Walmart recently vetted FreshDirect’s financial and performance data as the grocer’s largest investor, JPMorgan, casts around for potential buyers, according to the Post.
“JPMorgan is quietly shopping FreshDirect,” retail consultant Burt Flickinger confirmed to the Post. “FreshDirect was built to be a multiregional operator across seven states, and now it is a successful operator in four counties and one state.”
A former FreshDirect executive told the Post that Walmart and Amazon have been poking around FreshDirect for months. They haven't made a move, the executive speculated, because they are “waiting for FreshDirect’s valuation to go down further.”
Last year, the company moved to a new facility in the Bronx from Long Island City in the borough of Queens. Service glitches have besieged the company since the move, according to the Post.
Earlier this year, FreshDirect launched a same-day delivery service enabling its customers who place an order before 10 a.m. to receive it that evening. As well as same-day delivery, FreshDirect offers the following services:
- FreshDirect next day, delivering fresh food straight from the source to a customer’s door – order up to seven days in advance
- FoodKick, an on-demand service with a curated selection of fresh food, alcohol, local finds, prepared meals, grocery essentials and more, all delivered in as little as an hour (in select markets)
FreshDirect delivers directly to customers throughout seven states, including the New York City and Philadelphia metropolitan areas, and the District of Columbia.