Earlier this month we mentioned that Amazon was believed to be getting ready to launch its grocery delivery service in the San Francisco area. The rumor of the launch started up when AmazonFresh trucks were seen in San Francisco. The AmazonFresh service was originally available in Seattle and then moved to LA.
The service has officially kicked off in San Francisco and will deliver a number of fresh and dry goods to subscribers the same day or the next day. The AmazonFresh service costs $299 per year. The service will deliver all sorts of grocery items like fresh produce, meat, dairy, and other items.
The $299 yearly fee also includes Prime membership giving users free and low cost shipping on all sorts of items ordered on Amazon. Prime also includes free books on the Kindle and streaming video.
It's unclear how well Amazon competes on price with local grocery stores. Amazon had said in the past that it didn’t need to make money on AmazonFresh, just not lose money. Amazon hopes to make money off customers when they add other items with high profits to their carts along with their grocery orders.