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E-commerce behemoth Amazon.com is developing a drive-thru grocery store concept to be first deployed in the Silicon Valley area, the Silicon Valley Business Journal reported.
The concept would allow customers to order their groceries online, then schedule a pickup, the report said, citing sources familiar with the company's plans.
"We are seeing the emergence of the next generation of the food distribution system," Bill Bishop, chief architect at Brick Meets Click, told the newspaper.
Read More Amazon market cap surpasses Wal-Mart
Amazon declined CNBC's request for comment, and the newspaper said third-party developer Oppidan Investment declined to comment on the project.
Click here to read the full report.