Peapod, a company focused on online grocery selling and delivery since it started, has begun to expand its area of coverage in Manhattan, New York, just recently. This means that Peapod will now be in close competition with its long time rival, Fresh Direct.
Fresh Direct, a company who also specializes in selling groceries online, as well as delivery, has a solid customer base in New York. It started building its clientele in the area nine years ago. Analysts say that Peapod might have a bit of a challenge finding a customer base in the Manhattan area mainly because of the presence of Fresh Direct, as well as other sources of grocery. These other competitors include Whole Foods stores and corner bodegas.
Sucharita Mulpuru, a Retail Analyst for the Forrester Research of Cambridge, Massachusetts stated it is no surprise Peapod has decided to enter New York’s market despite the tough competition. New York’s area has been considered as one of the biggest markets in the grocery business.
Peapod and Fresh Direct have co-existed for years in the area of Queens, as well as some parts of Long Island and Westchester County. Just last fall, Peapod started delivering groceries in some areas in Brooklyn, which included Carroll Gardens and Park Slope. In November, Peapod did some test deliveries in certain areas of Manhattan.
Although Fresh Direct has a solid customer base in the Manhattan area, some customers, like Polly Klein, are inclined to try Peapod’s services just to see and compare which company is less expensive. According to her, she might try buying basic items at Peapod just to check if their prices are cheaper.
Peapod and Fresh Direct are probably the largest companies that deliver groceries in the NYC area, but there are other local companies that are popping up left and right, especially in Manhattan. Quinciple, Rustic Roots, Go Organic NYC are just a few in addition to Eli Zabar and NY Grocery. Hopefully we continue to see more added to this growing list!