An Amazon spokesperson declined to give more details on when the services will be available to all Prime customers, only saying that Amazon will be accepting new grocery customers every day.
In New York City, the threshold is $50.īut for those Amazon Prime members who are not current Fresh members nor Whole Foods delivery customers, they’ll have to apply to begin using either of the grocery delivery services. In most areas, Prime customers will need to order $35 of groceries to qualify for free delivery. The same goes for customers who have already used Amazon’s two-hour Prime Now delivery service for Whole Foods groceries. It’s an approach that some critics say indicates that the company has too much power.įor now, what do the changes mean for Prime customers? Current AmazonFresh members in the 21 US metropolitan areas that offer the service will immediately be able to use the service without the additional monthly fee. That is, essentially, the Amazon playbook that’s led to the success of everything from Amazon’s core Prime delivery service to its growth strategy in important new geographic regions like India. One possible translation: We’re willing to lose money now in order to attract enough customers to make the economics work out later. “Amazon has never been afraid to invest in the things that customers love,” said Stephenie Landry, the Amazon vice president who oversees the company’s online grocery business. With the move, Amazon is positioning itself as an even fiercer competitor to Instacart, Walmart, and several regional delivery services that are all competing to bring more of the $800 billion US grocery market online.Īnd it raises the question of how Amazon is capable of cutting the monthly fee in a notoriously difficult business plagued by thin profit margins. That means that grocery delivery on a wide selection of fresh goods like meat and produce is now just another Prime perk, alongside one-day delivery on regular merchandise and free movie and music streaming. But two-plus years later, Amazon is doubling down on AmazonFresh instead.Īs of Tuesday, the Seattle-based tech giant is dropping the $15-a-month fee that Prime members previously paid for AmazonFresh grocery delivery on top of their $119 annual Prime fee. When Amazon spent $14 billion to buy Whole Foods in 2017, it seemed likely that the company would one day shut down its own grocery service, AmazonFresh.
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