SEATTLE - Amazon (NASDAQ: AMZN) has launched a new grocery delivery subscription service for Prime members in over 3,500 U.S. cities and towns, offering unlimited deliveries for monthly orders over $35 from Amazon Fresh, Whole Foods Market, and other local retailers. The service is priced at $9.99 per month and includes additional benefits such as one-hour delivery slots and unlimited 30-minute pickup on any size orders.
The subscription is also available to non-Prime customers who have a registered Electronic Benefits Transfer (EBT) card, at a discounted rate of $4.99 per month. Amazon aims to provide more value and savings on delivery fees with this service, especially for customers who order groceries regularly.
Tony Hoggett, Amazon's senior vice president of worldwide grocery stores, stated that the company is striving to create a top-tier grocery shopping experience, prioritizing customer convenience. The service is designed to cater to diverse customer needs, saving them time and money with each grocery purchase.
In addition to the unlimited delivery service, Prime members will continue to enjoy exclusive savings at Amazon Fresh and Whole Foods Market stores. For EBT cardholders, the discounted subscription fee reflects Amazon's effort to make grocery shopping more affordable for low-income customers.
The grocery delivery subscription also extends to orders from local grocery and specialty retailers such as Cardenas Markets, Save Mart, Bartell Drugs, Rite Aid (NYSE:US90274J5618=UBSS), Pet Food Express, and Mission Wine & Spirits, where available. Subscribers benefit from convenient delivery and pickup options, including priority access to weekly grocery order reservations.
Amazon conducted a pilot of the grocery subscription in select cities in late 2023, with more than 85% of surveyed participants expressing high satisfaction with the free delivery benefit. The subscription's cost can be offset by as little as one delivery order per month from Whole Foods Market or Amazon Fresh.
This initiative is part of Amazon's ongoing innovation to enhance customer experience in grocery shopping, both online and in physical stores. The company's portfolio includes Whole Foods Market, Amazon Fresh, and Amazon Go, as well as partnerships with other retailers globally.
The information in this article is based on a press release statement from Amazon.com (NASDAQ:AMZN), Inc.
InvestingPro Insights
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