FreshDirect ramps up online grocery capabilities

Last year the company expanded from the Northeast and hoped to replicate its success in the Washington, D.C., market.

FreshDirect is opening a new campus in New York City to help it ramp up its business to more states.

The company says its new facility is going to reimagine farm-to-fork food distribution and manufacturing, which will provide even higher quality, fresher food for customers. It will also enable the company to add thousands of new products and accelerate its expansion into new geographies with its FreshDirect, FoodKick and FreshDirect At the Office brands.

“The launch of the FreshDirect Campus is the culmination of 16 years of learnings that have enabled us to reinvent the grocery industry with customer experience, food quality, and sustainability at its core,” said FreshDirect CEO and Co-Founder, Jason Ackerman. “This marks a pivotal moment for our business, while positioning us for future growth. We can also better serve the community by providing greater access to fresh food and significantly reducing food waste, cardboard use, and energy consumption.”

According to the company, the new campus facility:

  • Houses temperature controlled areas designed to best handle and store meat, seafood, produce, deli, bakery and prepared food items
  • Will bring in “personal shoppers” assigned to handpick items who will be trained for the tasks
  • Has launched an internal quality control app, titled FDQC, to better monitor, track, and widely share daily quality ratings of every fresh item, enabled by real-time inspection decisions
  • Making strides in sustainability, the FDC will eliminate its usage of cardboard delivery boxes by moving all deliveries to a 100% recyclable woven bag, saving more than 10 million cardboard boxes annually
  • One refrigerated central food facility uses significantly less energy to protect the cold chain and ensures a huge fossil fuel reduction compared to retail brick-and-mortar operations

Last year the company expanded from the Northeast and hoped to replicate its success in the Washington, D.C., market. Service in the nation's capital was introduced to 60 Zip codes in April, with plans to expand to nearby areas in Northern Virginia and Southern Maryland.

"Competition has exploded in the food delivery space the past few years, but unlike many of the new entrants, at FreshDirect food is in our DNA. We are a food tech company whose focus has always been on fresh," said PJ Oleksak, FreshDirect's Chief Growth Officer.