Jolie O’Dell of Mashable has a story about the rumor of Amazon developing a grocery-delivery service a la Peapod. Apparently they have piloted this for Amazon employees in the Seattle area and also already have a service called Fresh which allows anyone in the Seattle area to order fresh produce and meat.

Like, Peapod though, it doesn’t come without it extra cost:

Granted, the convenience is reflected in the price — would you pay $2.50 for a single grapefruit under any other circumstances? — but you get what you pay for, which in this case amounts to a lot of time and energy saved.

A friend of mine has used Peapod in the past and loves the convenience but isn’t a huge fan of the limited selection or cost. Amazon is generally pretty good at having lower prices, so maybe they will find a way.