Amazon Launches Free 2-Hour Whole Foods Delivery for Prime Customers

Amazon Launches Free 2-Hour Whole Foods Delivery for Prime Customers

Amazon Launches Free 2-Hour Whole Foods Delivery for Prime Customers

Whole Foods' co-founder and CEO said in a statement: "We're happy to bring our customers the convenience of free two-hour delivery through Prime Now".

Amazon said deliveries will start Thursday in Austin, Texas; Cincinnati; Dallas; and Virginia Beach, Virginia.

However, all these integrations focused on Whole Foods' brick-and-mortar stores, making the new delivery integration a first and unique offering to push up sales of Whole Foods products. They cornered 18 percent of the entire grocery delivery market last month.

In a news release, Amazon said it plans to expand this service across the US throughout the year. Two-hour delivery is free, whereas the one-hour delivery would cost somewhere around $7.99 on orders above $35.

The new announcement follows Amazon's recent acquisition of Whole Foods in August 2017. "This provides consumers with what they value above everything else - freedom to choose the channel that most suits their needs, be that physical or online".

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One question is whether Prime Now will make available for online purchase and delivery the complete inventory of the local Whole Foods or only a select subset.

Whole Foods deliveries are now available from 8am to 10pm, and Amazon claims that customers will be able to shop for "thousands" of items. "People love to shop at Whole Foods for perishables, including seafood and bakery, and those categories don't lend themselves to delivery so well". The company will roll out the service to more cities later in the year.

"Nearly every chain that plans on being in business in five years is moving to delivery, " said David Livingston, a supermarket analyst for DJL Research. Amazon is now the number one online seller of groceries, accounting for 18% of total sales, a Packaged Facts report notes.

Despite the perceived upsides of the new inventory management model, the grocery giant's workers say they're having a hard time keeping up with the demands of Amazon's frantic pace. "They will pick the items, put them in appropriate packaging to maintain the chill chain and pack them".

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