Fresh Product Case Study
COMPANY NAME:
Fresh Direct
WEBSITE:
www.freshdirect.com
INDUSTRY
Fresh Direct is in the online grocery store industry.
BACKGROUND/HISTORY
Fresh Direct is an online grocer that delivers to residences and offices in the New York City metropolitan area. Fresh Direct offers online grocery shopping and delivery service to more than 300 zip codes in Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and parts of Connecticut. Fresh Direct also offers pickup service at its Long Island City facility, as well as corporate service to selected delivery zones in Manhattan and summer delivery service to the Hamptons on Long Island. Joseph Fedele and Jason Ackerman found Fresh Direct in July 2001. Fresh Direct has had some problems through the years by local grocery stores offering the same type of service and parking problems among a few.
Jason Ackerman is the current CEO of Fresh Direct.
The Private Company Database (Fresh Direct Holdings, LLC, 2012) listed the following financial information for Fresh Direct:
* In 2003 the company generated $88,000,000 in revenues and had operating loss of $6,000,000.
* In 2003 the company generated $124,000,000 in revenues and had operating loss of $1,500,000.
* In 2003 the company generated $147,000,000 in revenues and had operating loss of $3,500,000.
Fresh Direct was slowly increasing its revenues while reducing its losses until it finally became profitable in 2008. The company’s profit continued to increase until it reached an estimated $300 million in 2009; however, it seems as if it is difficult for the company to operate without outside help. In 2003, Fresh Direct received $31 million in series A funding. Also, the Bronx Overall Economic Development Corporation gave approximately $3.5 million in grants and loans. Also, New York and New Jersey are competing over the company with subsidies (Powell, 2012). British supermarket retailer Wm Morrision purchased a $50
Fresh Direct
WEBSITE:
www.freshdirect.com
INDUSTRY
Fresh Direct is in the online grocery store industry.
BACKGROUND/HISTORY
Fresh Direct is an online grocer that delivers to residences and offices in the New York City metropolitan area. Fresh Direct offers online grocery shopping and delivery service to more than 300 zip codes in Manhattan, Queens, Brooklyn, Nassau County, Riverdale, Westchester, select areas of Staten Island, New Jersey, and parts of Connecticut. Fresh Direct also offers pickup service at its Long Island City facility, as well as corporate service to selected delivery zones in Manhattan and summer delivery service to the Hamptons on Long Island. Joseph Fedele and Jason Ackerman found Fresh Direct in July 2001. Fresh Direct has had some problems through the years by local grocery stores offering the same type of service and parking problems among a few.
Jason Ackerman is the current CEO of Fresh Direct.
The Private Company Database (Fresh Direct Holdings, LLC, 2012) listed the following financial information for Fresh Direct:
* In 2003 the company generated $88,000,000 in revenues and had operating loss of $6,000,000.
* In 2003 the company generated $124,000,000 in revenues and had operating loss of $1,500,000.
* In 2003 the company generated $147,000,000 in revenues and had operating loss of $3,500,000.
Fresh Direct was slowly increasing its revenues while reducing its losses until it finally became profitable in 2008. The company’s profit continued to increase until it reached an estimated $300 million in 2009; however, it seems as if it is difficult for the company to operate without outside help. In 2003, Fresh Direct received $31 million in series A funding. Also, the Bronx Overall Economic Development Corporation gave approximately $3.5 million in grants and loans. Also, New York and New Jersey are competing over the company with subsidies (Powell, 2012). British supermarket retailer Wm Morrision purchased a $50