curtwoodward writes "Amazon has been delivering groceries to people in its hometown of Seattle for a half-dozen years, but the experiment has never spread any further. But this year, rumors about Amazon Fresh expanding to new cities are coming out every month — Reuters just reported that Amazon could start the service in L.A. within a week, and in San Francisco in the coming months. What gives? Why expand now? Look no further than Amazon's long-running battle with state and federal governments over sales tax policy. After more than a decade of resistance, Amazon has spent the last two years cutting deals to collect sales taxes in states all over the country. And it's pushing for a national online sales-tax system, which appears to be within reach. That's the last obstacle to Amazon getting into the grocery-delivery game — a step that should worry not only grocers, but UPS and FedEx, too."