Amazon Launches First-Ever Fresh Food Delivery Service
Amazon has entered the fresh food delivery market, aligning with premium grocery chain Harris Farm. This strategic partnership positions Amazon against leading Australian retailers like Coles and Woolworths. Starting January 28, 2026, residents in 80 Sydney suburbs can access thousands of fresh products through Amazon’s platform.
Launch of Fresh Food Delivery Service
For the first time, Sydney customers can order a variety of fresh items—from bakery goods to meat and dairy—via Amazon. However, frozen food will not be included in this offering. The service is designed to facilitate complete grocery shopping on Amazon, integrating fresh produce with pantry and personal care products.
Growth of Amazon’s Grocery Sector
- Amazon reported a 30% year-on-year growth in its essentials category.
- The partnership took over a year to finalize, underlining Amazon’s commitment to expanding its grocery offerings.
Arno Lenior, director of Amazon’s Prime subscription program in Asia Pacific, noted that fresh food was a crucial part of the customer shopping experience that Amazon aimed to enhance. Customers can choose same-day or next-day delivery with a convenient two-hour window option.
Delivery Options and Costs
Amazon offers free shipping for Prime members on orders above $100. Non-Prime customers will need to spend over $200 for free delivery, with a flat fee of $15 for smaller orders. Harris Farm’s products will carry a 10% premium compared to in-store prices.
About Harris Farm Markets
- Founded in 1971, Harris Farm is a family-owned grocery chain.
- The chain is known for providing a premium shopping experience focusing on local produce.
- It operates nearly 40 stores, predominately located in New South Wales.
Angus Harris, co-chief executive of Harris Farm, expressed optimism about the partnership, stating it would amplify their brand reach. Despite having an existing online store, the collaboration with Amazon is expected to improve customer experiences significantly.
Community Impact and Industry Dynamics
Deliveries will originate from Harris Farm’s Leichhardt store and be executed by Amazon Flex drivers, who are independent contractors. This model has drawn scrutiny regarding worker conditions. Retail analyst Trent Rigby highlighted that this partnership mirrors Amazon’s earlier acquisition of Whole Foods, where a premium grocery brand aided Amazon’s fresh food credentials without diluting them.
Competitive Landscape
The introduction of Amazon’s fresh food service intensifies competition in Australia’s grocery market, especially following the exit of Menulog. This market now primarily features Uber Eats, DoorDash, and a few niche players like Hungry Panda. DoorDash has also made strides into grocery delivery through alliances with chains like Costco and Aldi.
As online grocery sales surge, currently accounting for approximately 30% of Coles’ and Woolworths’ total sales, speed is becoming an essential factor in customer satisfaction. This partnership aims to leverage Amazon’s logistical capabilities, positioning both it and Harris Farm as formidable contenders in the fresh food delivery sector.
While the collaboration may not surpass Woolworths or Coles in scale, it establishes Amazon and Harris Farm as serious players in the Australian market for fresh groceries.
