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Internet Retailer reports that Fresh Direct, the New York City-based pure play e-grocer, is offering its customers an unlimited delivery pass – six months for $59 and 12 months for $99 – that covers as many deliveries as customers request during the period paid for. The pass is designed to increase the numbers of transactions that shoppers make, because each transaction made using the pass has the effect of lowering the overall delivery fee.
KC's View:
This is similar to Amazon's Prime program, which is a wonderful way to amortize delivery fees over the period of a year. The potential downside, of course, is that customers can place smaller orders, which in the case of Fresh Direct could rive up their costs because of the price of gasoline. Fresh Direct will have to hope that it all balances out in the end.