FreshDirect is an online grocer that brings produce, dairy and meat from local growers directly to the consumer, forgoing the usual stop at the brick and mortar.
“We found that nothing was more effective and efficient than not having stores,” Ackerman, Jason Ackerman, the company’s co-founder and chief executive said.
Crab and oysters from the Chesapeake Bay, angus beef from Maryland and organic chicken from Virginia are offered to customers in the New York area. The consumer pays a little more but the convenience and quality seem to balance the equation for many.
FreshDirect is by far the biggest online grocer in the New York area, controlling about 54 percent of the market.
And, there’s plenty of room for growth.
Online grocery sales are predicted to capture 20% of total grocery retail by 2025 to reach $100 billion in consumer sales, according to study by the Food Marketing Institute conducted by Nielsen.
Currently, the online grocery market share is estimated to be between 2-4%.
Since its start in 1999, FreshDirect has been based in Long Island City, just outside Manhattan. The company has three buildings and seven parking lots but ran out of space three years ago, expanding into a new facility in the Bronx that’ll allow it to also produce meal kits and prepared foods.
Read more here from the WSJ.