to pick the best quality grades in meat, fish and produce," he said. FreshDirect In 1998, Fedele launched FreshDirect. He initially raised $120 million and leveraged a no-store concept to develop a better plan: start by dealing directly with farmers, fishermen, and slaughterhouses and build a single super-efficient manufacturing and distribution facility to hold down costs. That kept gross margins high enough to cover the added costs of reliable delivery, offered in densely packed neighborhoods. Kenneth Boyer, an associate professor at Michigan State University's business school who studies online grocers, says a visit to the company "really blew me away." Controversies Harlem Fairway Certificate of Occupancy At the reopened/retitled Fairway facility in Harlem, as of early 1996 they lacked a Certificate of Occupancy. Co-owner Dave Sneldon claimed to have "a temporary certificate of occupancy to operate a wholesale business." Fedele said "we don't charge retail prices." A NYC commissioner claimed that they didn't apply. Fairway/FreshDirect: Fedele's role(s) After selling his interest in Fairway (to Glickberg and his partners) to start FreshDirect in 1998, Fedele became embroiled in a series of disputes with Fairway's owners, who accused him of over-representing his role in the creation of Fairway's Harlem branch. In response, Fedele says that his description of himself as the branch's "co-founder" is an understatement. He was quoted saying, in response to Glickberg, "my former partners at Fairway did business in the traditional retail way for 30 years before we became partners, having multiple distributors between them and the products that they sold. I guess after I became their partner they had this epiphany of totally disintermediating of supply chain which resulted in the "highest value proposition possible to the consumer. Getting them better, fresher food at 30 percent savings and giving us a sustainable, competitive and differentiated advantage." Fairway began hanging signs in its aisles attacking Fedele's credibility and the quality of FreshDirect's produce. New York Magazine wrote (May 17, 2004): The FreshDirect posters blaring that the company was BROUGHT TO YOU BY A CO-FOUNDER OF FAIRWAY UPTOWN and featuring a photo of Fedele made [Fairway owner Howie] Glickberg furious. He posted signs inside the West 74th Street store reading FAIRWAY IS IN NO WAY AFFILIATED WITH FRESHDIRECT. FreshDirect jabbed back by sending staffers dressed as giant fruits and vegetables to pass out fliers in front of Fairway. Then the FreshDirect website added a lengthy description of Fedele's role in