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In 2019, Peapod held 9% of the online grocery delivery market in New York City, behind FreshDirect (68%), Instacart (13%), and Amazon Fresh (9%). [ 12 ] In February 2020, Peapod announced they would be ceasing operations in the Midwest ( Illinois , Indiana , and Wisconsin ) and focus exclusively on serving the East Coast. [ 4 ]
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Online grocery stores may allow facilitating local food which may reduce the environmental impact of food transport. Small-scale farmers have been embracing digital technologies as a way to directly sell produce, and community-supported agriculture and direct-sell delivery systems are on the rise during the coronavirus pandemic. [ 15 ]
Early in 2017, FreshDirect, along with Amazon and other online grocery companies, began a two-year pilot program with the US Department of Agriculture. The program was designed to extend online delivery to low-income customers by accepting payment through the Supplemental Nutrition Assistance Program (SNAP). [39]
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