FreshDirect

FreshDirect is an American online grocery company and among the first enterprises to sell and deliver perishable foods to consumers without maintaining a retail operation.

[7] The company was an early proponent of the move towards food sustainability and rapidly grew in popularity by catering to an urban, socially-conscious consumer.

It also stocks and delivers numerous kosher foods[9][10] and is recognized by the Marine Stewardship Council as a certified sustainable seafood vendor.

[11] The company was founded in 1999 by former Fairway Market CEO Joe Fedele[12][13] and Jason Ackerman, a former investment banker who specialized in the grocery industry.

[15] Introduced to the New York market in 2002, FreshDirect's business grew popular for its convenience, fresh food and comparatively lower prices than many Manhattan supermarkets[17] although about 10% more elsewhere.

"[13] In a sudden move, Peter Ackerman, who held the majority of shares of the company, called Braddock in February 2011, complaining that the date of the board meeting had been changed without his notice.

In legal filings, Peter Ackerman claims that the board had already agreed to seek a new CEO and that he was exercising his right as majority shareholder to dismiss directors.

[27] Using the investment to gain access to FreshDirect's operations, Morrisons reported in 2013 that it had "learned a lot about the economics of picking and delivery of food" as well as its reputation-building strategy.

[31] As early as 2010, FreshDirect began looking to expand from the New York City metropolitan area into additional East Coast markets such as Boston, Philadelphia, or Washington, D.C.[25] It also considered that suburbs, while being more distant and requiring paying tolls, would only need one driver, and with a greater percentage of families, would yield more positive results.

[37] That same year the company expanded through the launch of FoodKick, an on-demand grocery delivery service providing a selection of essential food items and alcohol within one hour.

[40] The company expanded its geographical footprint in March 2017 to include delivery to Washington, DC; the surrounding towns of Arlington and McLean, Virginia; and Bethesda, Maryland.

As part of the expansion, the company began carrying a selection of regional foods including shellfish from the Chesapeake Bay, beef from Maryland, and chicken from the nearby Shenandoah Valley.

[42] At the same time, FreshDirect experienced a number of reliability problems that damaged its reputation and cost the company market share.

A graduate of the Culinary Institute of America at Hyde Park, McInerney had worked in the kitchens of noted chefs including Bernard Loiseau and David Bouley early in his career.

Centerbridge Partners, a private equity firm, would hold 20% of FreshDirect, which would retain its brand identity and continue to operate its Bronx warehouse and headquarters.

In the case of dry goods or frozen foods, items were picked from storage before being placed inside bins that travel along conveyors to the sorting area.

Though the website and plant processes were in development for several years before its public launch, the company made its first deliveries to Roosevelt Island on July 11, 2002.

The company's move to the Bronx in 2018 allowed for the implementation of a number of system improvements to enhance the quality and efficiency of food deliveries.

[58] At 400,000 square feet, the Bronx distribution center is significantly larger than the prior facility, allowing for individually temperature-controlled areas for meat, seafood, produce, deli, bakery and prepared food items.

In 2015, the company was cited by the US Environmental Protection Agency for its efforts to significantly reduce diesel emissions and promote clean transportation in the Northeast.

Following these failed campaigns, Local 348S of the United Food and Commercial Workers ran a successful organizing drive in 2006 and subsequently negotiated a contract for FreshDirect's drivers.

[63] In the summer of 2007, Local 805 of the International Brotherhood of Teamsters began signing up workers at FreshDirect's warehouse in Long Island City.

Days before the election U. S. Immigration and Customs Enforcement (ICE) officials "announced plans to inspect the company’s I-9 employment eligibility records.

It had recently expanded its delivery service to the borough and launched a pilot program that allowed some Bronx customers to pay with food stamps.

[70] In response to the announced deal, some community members expressed concern about the use of public monies to subsidize a private enterprise and the potentially negative environmental impacts of the move on the Mott Haven area in the South Bronx.

[33][70][71][73] Locally elected representatives, among them council members María del Carmen Arroyo and Melissa Mark-Viverito, New York State Senator José M. Serrano, US Congressman José E. Serrano, Comptroller John Liu and then-NYC Public Advocate Bill de Blasio, publicly came out against the proposed move.

[79] Both during his primary campaign for NYC mayor, and after winning the candidacy of the Democratic party, then-NYC Public Advocate Bill de Blasio repeatedly criticized FreshDirect's proposed relocation to the South Bronx.

[84][85][86] In February 2020, FreshDirect announced a relationship with New York Common Pantry, a regional non-profit organization focused on reducing hunger.

[87] In March, company CEO David McInerney announced a partnership with all five New York City borough presidents to launch a citywide initiative to deliver food to families impacted by the global pandemic.

[89] The company also re-launched FoodKick as FreshDirect Express, providing two-hour food delivery to Manhattan, Brooklyn, and parts of Queens.

FreshDirect Bronx warehouse and headquarters
FreshDirect headquarters
FreshDirect truck making deliveries in NYC