Amazon Launches Grocery Delivery via Whole Foods

Danny Woods
February 10, 2018

The two-hour delivery window applies to Prime Now customers living in Austin, Cincinnati, Dallas, and Virginia Beach who order $35 or more worth of groceries from Whole Foods.

Amazon and its subsidiary Whole Foods have started a trial program in four cites around the country to deliver groceries and other goods directly from Whole Foods.

As part of the deal, Prime Now customers get free two-hour delivery of their shopping after spending more than $35. While Whole Foods stores in ShopRite's Northeast operating area do not yet offer the Prime Now delivery, during February ShopRite is running a promotion where shoppers can save $15 on perishables (produce, meat, seafood, bakery, floral, dairy) on a total ShopRite from Home order of $225 or more. Amazon has cut prices on bananas, yogurt and other items, and began selling Kindle e-readers in some of its 470 stores. It accounts as of January, Amazon had 18% of online grocery sales in the United States.

Back in 2016, Amazon's same-day delivery service Prime Now kicked off in earnest with its own website.

Since Amazon bought Whole Foods a year ago for 13.7 billion, we've seen the online retailer dish out discounts and outfit many Whole Foods locations with Echo devices for you to buy along with your free-range chicken.

Rupal Karia, managing director - commercial sector at IT company Fujitsu, said: "Amazon's Whole Foods acquisition married the company's online expertise with the grocer's physical presence, and now Amazon is bringing the best of its fast-track delivery service to the grocery sector, by delivering products within one to two hours".

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Amazon has brought two-hour delivery to Whole Foods. Sometime in the future, the online retailer is also planning to install Amazon Lockers at Whole Foods locations, notes GeekWire. For many, these investments were made in anticipation of this very move.

So how does the new service work?

This Whole Foods delivery test is not on the scale of typical Amazon deliveries.

How Will the Food Be Delivered?

Buying data shows that Whole Foods' brand is one of Amazon's strongest weapons as it tries to take a bigger piece of the grocery pie. Instacart Express costs around $149 per year while Shipt's membership is $99. It may have put a chink in Wal-Mart's armor by offering low-income customers discounted memberships.

Amazon did not disclose what cities would be next on the list in terms of expansion. Those who want to get their groceries within an hour can pay $7.99.

Analysts see this as the first step towards Amazon truly leveraging Whole Foods stores.

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