NEW YORK (TheStreet) (AMZN) - Get Report and Walmart (WMT) have begun to introduce online grocery services that customers can have directly shipped to their homes. The competition within the on-demand grocery delivery business is continuing to ratchet up with smaller players developing as well.

FreshDirect is one of those smaller players hoping to make a significant impact. FreshDirect started in 1999 and is an online grocer that will deliver products to customers in the New York metropolitan area. Recently, FreshDirect has unveiled FoodKick, a service that can deliver groceries in as little as one hour.

FreshDirect CEO Jason Ackerman joined Monday morning's "Squawk Box" on CNBC to discuss the company and the grocery delivery business.

"We are expanding our biggest geography, which we haven't done in quite some time. We're expanding our manufacturing capacity a lot in our prepared meals. We've got a lot of innovations that are coming out," Ackerman said.

FoodKick is one of those innovations. He explained the service is focused on the on-demand shopper, with a more casual attitude when going to a grocery store.

"A lot of times consumers run out of stuff, forget something, or they're having people over Friday night, and it's that day. FoodKick is more focused on the urban dweller, the on-demand planner, fewer kids or no kids in the house," he added.

What FoodKick has shown is the demand for faster-delivery service.

In Brooklyn, where the initial service has begun rolling out, Ackerman says FoodKick is not only finding new customers but also people who weren't in the FreshDirect system before. They're now expanding the share of customers who can evolve with the service.

When asked if he plans to take the company public, Ackerman remained focused on the step-by-step process.

"Our funding will take us right along our five-year plan, but along the way, we'll see," he said.

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