FreshDirect is an American

online grocer An online grocer is either a brick-and-mortar supermarket or grocery store that allows online ordering, or a standalone e-commerce service that includes grocery items. There is usually a delivery charge for this service. Brick-and-mortar supermark ...

y company and among the first enterprises to sell and deliver perishable foods to consumers without maintaining a retail operation. Established in

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

, the company serves the New York metropolitan region as well as parts of Central New Jersey, Southern Connecticut, and Eastern Long Island. As of 2022, FreshDirect serves about 21 counties in the New York tristate area. FreshDirect custom-packages groceries and meals using

just-in-time manufacturing Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It is closely related to another concept called just-in-time manufacturing (J ...

, a practice that reduces waste, and improves quality and freshness. The company offers its services via a

website A website (also written as a web site) is a collection of web pages and related content that is identified by a common domain name and published on at least one web server. Examples of notable websites are Google Search, Google, Facebook, Amaz ...

and

mobile app A mobile application or app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch. Mobile applications often stand in contrast to desktop applications which are designed to run on d ...

. 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. FreshDirect focuses on reducing the time it takes for food to move from its source to the end user by buying directly from farms, emphasizing

organic food Organic food, ecological food or biological food are food and drinks produced by methods complying with the standards of organic farming. Standards vary worldwide, but organic farming features practices that cycle resources, promote ecological ...

and locally grown items. FreshDirect also stocks and delivers numerous

kosher (also or , ) is a set of dietary laws dealing with the foods that Jewish people are permitted to eat and how those foods must be prepared according to Jewish law. Food that may be consumed is deemed kosher ( in English, yi, כּשר), fro ...

foods and is recognized by the

Marine Stewardship Council The Marine Stewardship Council (MSC) is a non-profit organization which aims to set standards for sustainable fishing. Fisheries that wish to demonstrate they are well-managed and sustainable compared to the MSC's standards are assessed by a te ...

as a certified sustainable seafood vendor.

History

1999-2012: Founding and initial growth

The company was founded in 1999 by former

Fairway Market Fairway Market is an American grocery chain, founded in 1933 by Nathan Glickberg. It is currently one of the store banners owned by the Wakefern Food Corporation, a company famous for its flagship supermarket cooperative network, ShopRi ...

CEO

Joe Fedele Joseph Fedele (known as Joe Fedele, born C. 1962) is an entrepreneur who co-founded New York-based online specialty grocery FreshDirect in 1998 along with investment banker Jason Ackerman. Fedele served as CEO and co-chairman from 1998 to 2004. Pr ...

and Jason Ackerman, a former investment banker who specialized in the grocery industry. At the time, the concept of an online grocer had already been attempted, most notably by

Webvan Webvan was a dot-com company and grocery business that filed for bankruptcy in 2001 after 3 years of operation. It was headquartered in Foster City, California, United States. It delivered products to customers' homes within a 30-minute window o ...

which "flamed out... having spent almost $1 billion" in their attempt to create a supply chain and distribution system that could scale. 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 A supermarket is a self-service shop offering a wide variety of food, beverages and household products, organized into sections. This kind of store is larger and has a wider selection than earlier grocery stores, but is smaller and more limit ...

although about 10% more elsewhere. Fedele initially served as CEO until his departure in 2004. Ackerman, who had been serving as CFO, took over day to day responsibilities along with Dean Furbush, the COO. At the time, the company was generating $2 million in weekly sales.

Richard Braddock

In 2005, Richard Braddock was named as chairman of FreshDirect. He had significant experience leading e-commerce companies, having led

Priceline Priceline may refer to: *Priceline.com, a commercial website which helps users obtain discount rates for travel-related items such as airline tickets and hotel stays *The Priceline Group, a provider of online travel & related services, and a parent ...

from 1998 to 2004. Braddock took on the role of CEO in March 2005. Some speculated that his hiring signaled a move towards an initial public offering. FreshDirect experienced significant customer quality issues in its early years. Prior to 2008, 85 percent of its new customers only placed one or two orders before abandoning the service. In early 2008, FreshDirect fired its CEO, and gave that title to Braddock, who "served as chairman and CEO of Fresh Direct from March, 2008" through early 2011. FreshDirect changed strategies, discontinuing solicitations of new customers for two years while it focused on improving customer service. The company also implemented real-time data reports in order to monitor and quickly correct customer service issues. The company's new strategy worked, and by 2010, a majority of its revenue was derived from 45,000 to 50,000 repeat customers. By 2013, the company had 250,000 customers and $400 million in annual sales, and was being described internationally as a "home delivery success story." 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. Two days later, the board fired Braddock, who did not receive severance and lost his $6.5 million investment in the business. Three weeks later, Ackerman installed his nephew, Jason Ackerman, as CEO. Braddock sued the company in July 2012. 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.

Morrisons investment

In 2011, UK retailer Wm Morrisons bought a 10% stake in the company in order to learn about online shopping and launch its long-awaited online shopping service in the UK. 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. In March 2014, Morrisons announced that it would divest its stake in FreshDirect as part of a restructuring effort. In August 2016, Morrisons sold their 10% stake in FreshDirect for $58 million (£45 million).

Regional expansion of services

FreshDirect expanded its service area slowly. It began service in parts of

Manhattan Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...

Brooklyn Brooklyn () is a borough of New York City, coextensive with Kings County, in the U.S. state of New York. Kings County is the most populous county in the State of New York, and the second-most densely populated county in the United States, be ...

, and

Queens Queens is a borough of New York City, coextensive with Queens County, in the U.S. state of New York. Located on Long Island, it is the largest New York City borough by area. It is bordered by the borough of Brooklyn at the western tip of Long ...

in 2002, but by 2010 it still had not covered the entire New York City area. The company began testing service in select parts of Connecticut and New Jersey in 2010. Although had it served some parts of the Bronx earlier, FreshDirect did not offer service to all of the borough until 2012. As early as 2010, FreshDirect began looking to expand from the New York City metropolitan area into additional East Coast markets such as

Boston Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...

Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Sinc ...

, or

Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...

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. FreshDirect Building

2013-2020: Move to Bronx, market expansion, acquisition

In January 2013, FreshDirect officially launched service in the greater Philadelphia metropolitan area. In September 2013, the company launched new service in parts of the state of

Delaware Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacent Del ...

. in 2014 the company broke ground on a distribution hub and corporate headquarters at

Harlem River Yards Harlem River Yards (also known as Harlem River Yard The new facility was forecast to expand the company's operations capacity and create 1,000 additional jobs. In 2016 the company secured $189 million in outside funding at a valuation of $600 million. At the time it was the biggest round of fundraising in the company’s 17-year history. The investment was led by J.P. Morgan Asset Management, with W Capital and AARP Innovation Fund investing as well. In conjunction with the investment, two J.P. Morgan executives joined the company’s board. 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. 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 United States Department of Agriculture (USDA) is the United States federal executive departments, federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, ...

. The program was designed to extend online delivery to low-income customers by accepting payment through the

Supplemental Nutrition Assistance Program In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for low- and no-income people. It is a federal aid program, ad ...

(SNAP). As part of the program, customers could only use SNAP to pay for eligible items, not service or delivery fees. 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. Prior to the expansion, FreshDirect had maintained a warehouse in

Prince George's County ) , demonym = Prince Georgian , ZIP codes = 20607–20774 , area codes = 240, 301 , founded date = April 23 , founded year = 1696 , named for = Prince George of Denmark , leader_title = Executive , leader_name = Angela D. Alsobrook ...

, Maryland. At the time of the announcement, the company pledged to deliver food from its source directly to a customer's home in five days, which was roughly half the time of traditional supermarkets. 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. About 50 additional employees were hired. In July 2018, the company formally opened its administrative and warehouse center in the Bronx. The event was attended by local political leaders as well as New York Senator Senator Chuck Schumer. At the same time, FreshDirect experienced a number of reliability problems that damaged its reputation and cost the company market share. Many of these problems were traced back to issues within the Bronx warehouse. While what ''the New York Times'' called "Stages a Comeback" did not bring back 2017's 66% share of market, FreshDirect was still holding a 46% share, more than double that of the next largest competing firm. Just months later, in September 2018, co-founder and CEO Jason Ackerman suddenly resigned. David McInerney was named as Ackerman's replacement and was added to the board of directors.McInerney was among the original co-founders of FreshDirect. He had previously served as FreshDirect’s chief merchandising officer. He initially joined FreshDirect as a chef, creating the kitchen, bakery, and pastry operations in 2000. A graduate of the

Culinary Institute of America Culinary arts are the cuisine arts of food preparation, cooking and presentation of food, usually in the form of meals. People working in this field – especially in establishments such as restaurants – are commonly called chefs or ...

at Hyde Park, McInerney had worked in the kitchens of noted chefs including

Bernard Loiseau Bernard Daniel Jacques Loiseau (, 13 January 1951 – 24 February 2003) was a French chef at Le Relais Bernard Loiseau in Saulieu. He obtained his three stars in the Michelin Guide, and had a peak rating of 19.5/20 in the Gault Millau restaura ...

and

David Bouley David Bouley (born May 27, 1953, near Storrs, Connecticut) is an Cuisine of the United States, American chef with dual French citizenship. Sole owner and chef with restaurants in Tribeca, New York City. He is best known for his flagship restauran ...

early in his career. Under McInerney's guidance, FreshDirect developed relationships with suppliers to move food quickly from its source to the customer. One such effort was the Montauk Dayboat Fishing Program, which launched in 2004 through a partnership with a fish market in Montauk, New York. FreshDirect Front entrance to the bronx building

FreshDirect Front entrance to the bronx building

As of 2019, FreshDirect held 68% of the online grocery delivery market share in New York City. Other competitors included

Instacart Instacart is an American company that operates a grocery delivery and pick-up service in the United States and Canada. The company offers its services via a website and mobile app. The service allows customers to order groceries from participatin ...

(13%),

Peapod Peapod Online Grocer (US), LLC is an American online grocery delivery service. By February 2022, it changed its name to Peapod Digital Labs. The company is based in Chicago, IL and operated in several U.S. cities. It is owned by Netherlands-bas ...

(9%) and

Amazon Fresh Amazon Fresh is a subsidiary of the American e-commerce company Amazon in Seattle, Washington. It is a grocery retailer with physical stores and delivery services in most major U.S. cities, as well as some international cities, such as Berlin, Ha ...

(9%).

Acquisition

In the fall of 2020, Netherlands-based food retailer

Ahold Delhaize Koninklijke Ahold Delhaize N.V. (in Dutch literally "Royal Ahold Delhaize"), commonly known as Ahold Delhaize, is a Dutch multinational retail and wholesaling company. Its name comes from a merger between Ahold (Dutch) and Delhaize Group (Belgia ...

announced their intention to acquire a controlling interest in the company.

Centerbridge Partners Centerbridge Partners is a multi-strategy private investment firm focused on leveraged buyouts and distressed securities. The firm manages over $32 billion of assets

, a private equity firm, would hold 20% of FreshDirect, which would retain its brand identity and continue to operate its Bronx warehouse and headquarters. Following the acquisition, Dave Bass was named Managing Director of FreshDirect, replacing McInerney. Bass was charged with overseeing all operations including budgeting and setting growth targets. Bass previously led merchandising for

Digital Labs, a unit of Ahold Delhaize USA. He also had senior positions at

Food Lion Food Lion is an American regional grocery store chain headquartered in Salisbury, North Carolina, that operates over 1100 supermarkets in 10 states of the Mid-Atlantic and Southeastern United States (Delaware, Georgia, Kentucky, Maryland, North ...

and

Hannaford Bros Hannaford is an American supermarket chain based in Scarborough, Maine. Founded in Portland, Maine, in 1883, Hannaford operates stores in New England and New York. The chain is now part of the Ahold Delhaize group based in the Netherlands, and ...

. In August of 2022 the company ended service to Philadelphia and Washington, DC.

Seasonal Service

In 2021, FreshDirect launched a service to deliver alcohol to popular vacation destinations in the New York region during the summer months. The service, called the Rosé Express, guaranteed two-hour delivery of wine, beer, and spirits to customers in the Hamptons and Montauk communities as well as Bellport, Shelter Island, and the North Fork on Long Island. The service covers towns along the Jersey Shore as well as Long Beach Island.

Operations and technology

Ordering, picking and packing

FreshDirect uses

SAP AG Sap is a fluid transported in xylem cells (vessel elements or tracheids) or phloem sieve tube elements of a plant. These cells transport water and nutrients throughout the plant. Sap is distinct from latex, resin, or cell sap; it is a sepa ...

software Software is a set of computer programs and associated documentation and data. This is in contrast to hardware, from which the system is built and which actually performs the work. At the lowest programming level, executable code consists ...

to process thousands of orders placed on its 24 x 7

every night. The site is configured to handle up to 18,000 simultaneous shopping sessions. Originally, orders placed through the website were dispatched to the

kitchen A kitchen is a room or part of a room used for cooking and food preparation in a dwelling or in a commercial establishment. A modern middle-class residential kitchen is typically equipped with a stove, a sink with hot and cold running water, a ...

bakery A bakery is an establishment that produces and sells flour-based food baked in an oven such as bread, cookies, cakes, donuts, pastries, and pies. Some retail bakeries are also categorized as cafés, serving coffee and tea to customers who ...

, and

deli Deli may refer to: * Delicatessen, a shop selling specially prepared food, or food prepared by such a shop * Sultanate of Deli, a former sultanate in North Sumatra, Indonesia Places * Deli, Boyer-Ahmad, a village in Kohgiluyeh and Boyer-Ahmad Pro ...

as well as fresh storage rooms,

produce Produce is a generalized term for many farm-produced crops, including fruits and vegetables (grains, oats, etc. are also sometimes considered ''produce''). More specifically, the term ''produce'' often implies that the products are fresh and g ...

ripening Ripening is a process in fruits that causes them to become more palatable. In general, fruit becomes sweeter, less green, and softer as it ripens. Even though the acidity of fruit increases as it ripens, the higher acidity level does not make the ...

rooms and production areas within the company's refrigerated facility. All order components were custom-cut, packaged, weighed and priced. In the case of

dry goods Dry goods is a historic term describing the type of product line a store carries, which differs by region. The term comes from the textile trade, and the shops appear to have spread with the mercantile trade across the British Empire (and forme ...

frozen foods Freezing food preserves it from the time it is prepared to the time it is eaten. Since early times, farmers, fishermen, and trappers have preserved grains and produce in unheated buildings during the winter season. Freezing food slows decompositi ...

, items were picked from storage before being placed inside bins that travel along

conveyors A conveyor belt is the carrying medium of a belt conveyor system (often shortened to belt conveyor). A belt conveyor system is one of many types of conveyor systems. A belt conveyor system consists of two or more pulleys (sometimes referred to ...

to the sorting area. There, products in a customer's order were scanned and gathered in

corrugated fiberboard Corrugated fiberboard or corrugated cardboard is a type of packaging material consisting of a fluted corrugated sheet and one or two flat linerboards. It is made on "flute lamination machines" or "corrugators" and is used for making corrugated ...

boxes. The boxes were labeled, recorded and loaded into refrigerated delivery trucks. Other software optimized for how much was going where. From 1999 through 2018, the company's base of operations was a warehouse and administrative building in

Long Island City Long Island City (LIC) is a residential and commercial neighborhood on the extreme western tip of Queens, a borough in New York City. It is bordered by Astoria to the north; the East River to the west; New Calvary Cemetery in Sunnyside to the ...

, New York. 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 Roosevelt Island is an island in New York City's East River, within the borough of Manhattan. It lies between Manhattan Island to the west, and the borough of Queens, on Long Island, to the east. Running from the equivalent of East 46th to 85 ...

on July 11, 2002.

Bronx warehouse

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. 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. The facility also houses 15 different temperature zones, including a specific freezer room for premium ice cream, and refrigerated rooms for bananas, tomatoes, and onions. Personal shoppers work daily with the same 20 to 30 fresh products. An internal quality-control app monitors, tracks and shares ratings of every fresh item. Beginning in 2018, the company eliminated use of cardboard boxes and transitioned to 100% recyclable woven bags for deliveries, saving more than 10 million cardboard boxes annually. Conveyor belts in the warehouse run for almost nine miles (15 km) throughout the packaging area. A bin typically travels for 25 to 30 minutes on a conveyor belt during the picking and packing process. The Bronx distribution hub is equivalent in size to 50 grocery stores, allowing for greater efficiency when reallocating perishable items to local food relief partners including City Harvest and the

Food Bank for New York City Food Bank For New York City is a non-profit social services organization and the major hunger-relief organization working against hunger in the five boroughs. Its aim is to organize food, information and support for needy citizens of New York City ...

Truck fleet and deliveries

FreshDirect maintains a fleet of more than 300 vehicles ranging in size from box trucks to tractor trailers. Many are outfitted with custom features including frozen zones, special shelving for grocery orders and tri-fold rear doors with steps on the rear platforms. The company uses a system on its trucks that includes GPS, safety warnings, notifications and alerts. These systems monitor the way trucks are driven to ensure that drivers are operating safely and limiting product damage. The fleet uses multiple forms of fuel, including electric, biodiesel, and CNG. In 2015, the company was cited by the

US Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it be ...

for its efforts to significantly reduce diesel emissions and promote clean transportation in the Northeast. Groceries are delivered in reusable bags. About 150,000 reusable bags are used in the delivery process. For some time, the company would accept returns of the bags but ended that practice in 2020. Some customers have taken to repurposing the bags into clothing and art. In 2021, the company donated excess bags to local community organizations which used the bags to deliver books and food.

Controversies

Unionization vote

Employees at FreshDirect have made several attempts to unionize. In 2004 and 2005, Teamster Locals ran two unsuccessful campaigns to organize FreshDirect's 500 delivery workers. Following these failed campaigns, Local 348S of the

United Food and Commercial Workers The United Food and Commercial Workers International Union (UFCW) is a labor union representing approximately 1.3 million workers in the United States and Canada in industries including retail; meatpacking, food processing and manufacturing; hosp ...

ran a successful organizing drive in 2006 and subsequently negotiated a contract for FreshDirect's drivers. Although Anthony Fazio Jr., the UFCW local's secretary treasurer, said his union waged a tough fight to win recognition, some plant workers reported that company officials had openly encouraged workers to sign up with 348S. 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. UFCW Local 348S subsequently announced their intention to organize the warehouse workers. 348S later filed for an election, which was held on December 22 and 23, 2007. Approximately 530 of the warehouse's 900 employees voted in the election. Of those who participated, 426 workers voted against joining any union, 73 voted to join the Teamsters, and 31 voted to join UFCW 348S. The election, however, was mired with controversy. Days before the election

U. S. Immigration and Customs Enforcement The U.S. Immigration and Customs Enforcement (ICE) is a federal law enforcement agency under the U.S. Department of Homeland Security. ICE's stated mission is to protect the United States from the cross-border crime and illegal immigration th ...

(ICE) officials "announced plans to inspect the company’s I-9 employment eligibility records." FreshDirect asked its employees to verify their U.S. work eligibility. As a result, 200 to 300 employees were dismissed, were suspended, or quit just days before the vote was scheduled. Union activists and some New York City elected officials claimed FreshDirect and I.C.E. intentionally created an atmosphere of fear and intimidation. FreshDirect publicly denied this, noting that some immigrant employees opposed unionization, and suggested that the union had called immigration authorities to drive off workers they had failed to win over.

Opposition to South Bronx move

FreshDirect announced plans in 2012 to move to

Harlem River Yards Harlem River Yards (also known as Harlem River Yard pilot program A pilot study, pilot project, pilot test, or pilot experiment is a small-scale preliminary study conducted to evaluate feasibility, duration, cost, adverse events, and improve upon the study design prior to performance of a full-scale research pr ...

that allowed some Bronx customers to pay with

food stamps In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for low- and no-income people. It is a federal aid program, ad ...

. 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 Mott Haven is an American primarily residential neighborhood in the southwestern section of the New York City borough of the Bronx. Its boundaries, starting from the north and moving clockwise, are East 149th Street to the north, the Bruckner E ...

area in the

South Bronx The South Bronx is an area of the New York City Borough (New York City), borough of the Bronx. The area comprises neighborhoods in the southern part of the Bronx, such as Concourse, Bronx, Concourse, Mott Haven, Bronx, Mott Haven, Melrose, B ...

. Opponents alleged that FreshDirect and city officials failed to conduct a sufficient environmental review. In addition, critics argued that FreshDirect's claim of future job creation was not backed by any legally binding agreement to create jobs. South Bronx Unite, a coalition of Bronx community organizations, businesses, and residents, attempted to stop the relocation by filing a lawsuit and launching a campaign to boycott the company. Locally elected representatives, among them council members María del Carmen Arroyo and

Melissa Mark-Viverito Melissa Mark-Viverito (born April 1, 1969) is an American Democratic Party (United States), Democratic politician and former speaker of the New York City Council from 2014 to 2017, as well as councilmember for the New York City's 8th City Council ...

, New York State Senator

José M. Serrano José Marco Serrano (born June 19, 1972) is a member of the New York State Senate from the New York's 29th State Senate district, 29th District, representing Mott Haven, Bronx, Mott Haven, Melrose, Bronx, Melrose, Highbridge, Bronx, Highbridge, M ...

, US Congressman

José E. Serrano José Enrique Serrano (born October 24, 1943) is an American politician who was a member of the U.S. House of Representatives from 1990 until his retirement in 2021. Serrano, a Democrat from New York, represented a district that is one of the ...

, Comptroller

John Liu John Chun Yah Liu (born January 8, 1967) is an American politician in New York City. A member of the Democratic Party, he is a member of the New York State Senate for the 11th district in northeast Queens. He previously served as the 43rd New Y ...

and then-NYC Public Advocate

Bill de Blasio Bill de Blasio (; born Warren Wilhelm Jr., May 8, 1961; later Warren de Blasio-Wilhelm) is an American politician who served as the 109th mayor of New York City from 2014 to 2021. A member of the Democratic Party, he held the office of New Yor ...

, publicly came out against the proposed move. In an audit, then-comptroller Liu supported the group's claims by stating that EDC subsidized "empty job promises." Liu, who was campaigning for New York City mayor at the time, also told the press that FreshDirect was holding the city 'hostage' with the proposed move. In November 2012, Gristede's supermarket owner

John Catsimatidis John A. Catsimatidis (born September 7, 1948) is an American billionaire businessman and radio talk show host. He is the owner, president, chairman, and CEO of Gristedes Foods, a grocery chain in Manhattan, and the Red Apple Group, a real estat ...

, the New York Association of Grocery Stores, the National Supermarket Association, and the Bodega Association announced that they were joining the opposition, claiming that FreshDirect was receiving unfair benefits from the city. Both during his primary campaign for NYC mayor, and after winning the candidacy of the Democratic party, then-NYC Public Advocate

repeatedly criticized FreshDirect's proposed relocation to the South Bronx. In June 2013, a

New York Supreme Court The Supreme Court of the State of New York is the trial-level court of general jurisdiction in the New York State Unified Court System. (Its Appellate Division is also the highest intermediate appellate court.) It is vested with unlimited civ ...

judge threw out the lawsuit against FreshDirect's move, finding that the city's environmental review was "based on a thorough review of all areas of relevant concern." South Bronx Unite, joined by the

Natural Resources Defense Council The Natural Resources Defense Council (NRDC) is a United States-based 501(c)(3) non-profit international environmental advocacy group, with its headquarters in New York City and offices in Washington D.C., San Francisco, Los Angeles, Chicago, Bo ...

and Latino Pastoral Action Center, filed an appeal in late 2013, but their appeal was dismissed in March 2014. South Bronx Unite also organized protests against the move, including a demonstration at the Harlem River Yards on March 22, 2014 which resulted in the arrests of nine protesters. These legal challenges and protests ultimately failed to stop the move, with FreshDirect breaking ground for its new facility in December 2014. Th
FreshDirect
warehouse began operating in 2018. A study was held by researchers from Colombia University who confirmed increased traffic congestion in two neighborhoods due to the warehouse. This directly contradicts the environmental assessment submitted in 2014 which stated there would be "no significant adverse environmental impact". Traffic congestion increased significantly in both mixed-use zones in every part of the day except 9 a.m. to noon near the train yard. In Mott Haven, congestion increased significantly between midnight and 6 a.m., while on the highways, traffic increased between midnight and 6 a.m. and from 9 p.m. to midnight. Drilling down to the adjoining roads that were part of the environmental review, congestion increased for most of the day. Traffic also increased on three out of the four roads that weren’t studied in the environmental assessment.

Philanthropy and response to COVID-19

In February 2020, FreshDirect announced a relationship with New York-based Common Pantry, a regional non-profit organization focused on reducing hunger. In the first few months of the relationship, FreshDirect customers donated more than $1 million to the organization. In September, the company announced that Common Pantry would also receive office space as part of the relationship. 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. In direct response to the COVID-19 outbreak, FreshDirect experienced a 50% increase in new customers. This sudden demand led the company to significantly increase the number of delivery timeslots, add capacity throughout the New York areas, and expand delivery to the Hamptons on Long Island and the New Jersey Shore. The company also re-launched FoodKick as FreshDirect Express, providing two-hour food delivery to Manhattan, Brooklyn, and parts of Queens.

References

External links

* {{coord, 40, 44, 22, N, 73, 56, 49, W, region:US-NY, display=title Companies based in New York City Online retailers of the United States Online grocers Retail companies established in 1999 Transport companies established in 1999 Internet properties established in 1999 Companies based in the Bronx Food production companies based in New York City Mott Haven, Bronx 1999 establishments in New York City