FreshDirect was founded in 1999 by Jason Ackerman and Joseph Fedele founded thecompany in 1999 in the wake of others' failed attempts at an online grocer. Three yearslater its orange and green refrigerated trucks hit the Manhattan streets. Those truckshave become almost as ubiquitous as yellow taxicabs. According to reports, 15 per centof 1.6 million Manhattanites have used FreshDirect. The company delivers to more than250,000 customers in New York and New Jersey.The idea of FreshDirect is eliminate the middleman. By taking orders in advance,FreshDirect devised a made-to-order model. It prepares the foods, and as a result,according to Ackerman, this is a more cost-effective and less wasteful process than theregular grocery-store model. Ackerman and Fedele split up the responsibilities based on their expertise. In thatBloomberg interview, Ackerman said,
³Joe, having worked at -- and built -- Fairway wasresponsible for bringing in all of the supply.
And I focused on how to actually take all thesupply and get it within the warehouse and actually get it to the customer.
Boost average order size by roughly 10%, to $110.
Deliver seven days a week, up from the existing six-day schedule.
Begin tracking speed and quality metrics, such as time to process order from rawmaterial to delivery.
Allow managers to access metrics.
FreshDirect key stakeholders are investors or shareholders,customers, employees, suppliers, General public, New York City, and centralgovernment.