For a long time, Fresh did not directly make a profit. That wasn't it's purpose.
The goal of Amazon fresh was to say "hey UPS! Looks like we can do deliveries all by ourselves without you! Give us a better deal or we'll become your competitor". Because all those deliveries were on Amazon trucks.
Then one day Amazon's delivery needs scaled beyond what UPS was willing to take on. And so Amazon Logistics became a major thing.
Amazon logistics actually started first in India because India was an unorganized section and there was no other company that can support Amazon. Almost every startup in India had to make their own logistic network.
The goal of Amazon fresh was to say "hey UPS! Looks like we can do deliveries all by ourselves without you! Give us a better deal or we'll become your competitor". Because all those deliveries were on Amazon trucks.
Then one day Amazon's delivery needs scaled beyond what UPS was willing to take on. And so Amazon Logistics became a major thing.