NYC's Cheapest Grocery Delivery Is Amazon, Study Says. Its Most Expensive: FreshDirect

Amazon.com Inc., which has been seeking to push further into shoppers' everyday lives, was the least expensive grocery-delivery option in New York City, beating the closest competitor by $20 on a 30-item order, a study found.

The report, from analysts at Nomura Securities International Inc., shows how supermarkets could be the next target of the Seattle-based Web retailer, through the combination of convenient delivery at low prices that it has used to snag business from book stores and big-box chains.

In the pricing study, Nomura ordered 30 grocery items—including green seedless grapes, Eggo whole-wheat waffles and a 2-liter bottle of Coca-Cola—from competing New York delivery services Amazon Fresh, Instacart Inc., Peapod Inc. and FreshDirect Holdings Inc. The order cost $122.03 from Amazon Fresh, which included a $5 tip. Instacart, with the order placed through partnering grocer Fairway, came in $20 higher at $142.86. FreshDirect was the most expensive, at $158.74.

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