Safeway Launches Internet Service in Sacramento

SAN FRANCISCO - Safeway Inc. announced it will launch Internet grocery sales in selected Sacramento-area ZIP codes today, moving the company closer to its goal of serving Bay Area Internet shoppers, the San Francisco Chronicle reports.

Safeway spokesman David Bowlby said the company will make its formal move in the Bay Area, which is known as the U.S. region with the highest per capital Internet usage, "in the near future," according to the Chronicle.

About 50 ZIP codes will be eligible for Safeway's delivery of online orders around Sacramento. Shoppers will pay a $9.95 delivery fee, with no minimum order size, to receive their groceries within two hours of ordering, Bowlby said.

Safeway, which partnered last year with the U.K.'s Tesco in a majority co-ownership of GroceryWorks, introduced its online shopping service in Portland, Ore., in January. Bowlby pointed to Portland as the company's online business model.

Albertson's recently expanded its online service in Southern California and now serves Los Angeles, Orange County, San Diego and Riverside, as well as Seattle, according to a company spokeswoman. She said Albertson's plans to expand its online services and is exploring several markets including the Bay Area, but the company is not ready to provide details, the Chronicle reports.
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