Amazon has recently announced the launch of a new grocery subscription offering for its Prime members in three selected cities. The $9.99 per month subscription provides Prime members with a range of benefits, including unlimited free grocery delivery on orders over $35 from Whole Foods Market and Amazon Fresh, as well as unlimited 30-minute pickup on orders of any size. This new offering is currently being tested in Denver, Sacramento, and Columbus.
Key Takeaway
Amazon is piloting a new $9.99 monthly grocery subscription for Prime members in three cities. The subscription offers unlimited free grocery delivery on orders over $35 from Whole Foods Market and Amazon Fresh, as well as unlimited 30-minute pickup on orders of any size. By introducing this subscription, Amazon aims to provide added convenience, savings, and expand its market share against competitors in the online grocery industry.
Expanded Convenience and Savings for Prime Members
This latest endeavor by Amazon aims to make shopping for groceries even more effortless, convenient, and economical for its loyal Prime members. By subscribing to this new service, Prime members can now enjoy unlimited free grocery deliveries on orders over $35, eliminating the need to pay the previous delivery fees. Tony Hoggett, Amazon’s senior vice president of worldwide grocery stores, expressed the company’s eagerness to gather feedback from members who participate in this trial.
Evolution of Prime Grocery Benefits
It’s important to note the changes that Amazon has made to its grocery delivery services in recent years. Previously, Prime members were not required to pay for Fresh deliveries on orders above $35. However, earlier this year, the company implemented delivery fees for Fresh grocery orders below $150, eliminating the perk of free delivery for Prime members. In October, Amazon revised its decision and lowered the threshold for free grocery deliveries to $100. Subsequently, Whole Foods orders started incurring a $9.95 fee for delivery in September 2021, while they were previously offered at no extra charge.
A Competitive Move by Amazon
With the introduction of this new subscription offering, Amazon aims to entice Prime members to place more orders without the concern of delivery fees. By eliminating these charges for orders over $35, the company hopes to increase customer loyalty and promote frequent usage of their grocery delivery services. This launch follows Amazon’s recent announcement that Prime membership will no longer be required for ordering groceries from Amazon Fresh, thus expanding the availability of these services to non-Prime members. This strategic move positions Amazon to compete more effectively against rivals like Instacart, Walmart, and DoorDash in the highly competitive online grocery market.
