The firm disclosed that Amazon is launching a new food subscription product for Prime members in three locations on Thursday. The new $9.99 per month membership provides Prime members access to unlimited free food delivery on orders over $35 from Whole Foods Market and Amazon Fresh. The membership also enables unlimited 30-minute pickup on purchases of any size.
The new option is being tested in Denver, Colorado; Sacramento, California; and Columbus, Ohio, the business informed TechCrunch in an email.
“We’re always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond,” said Tony Hoggett, Amazon’s senior vice president of international grocery shops, in a statement.
Prime members presently pay a $6.95 charge for fresh orders between $50 and $100 and $9.95 for items less than $50.
However, Prime members didn’t always have to pay for fresh delivery on orders above $35. Amazon started collecting delivery costs for Fresh Food purchases under $150 earlier this January, removing a benefit that provided Prime members free delivery on orders above $35. Amazon later amended its decision in October, cutting the threshold for free grocery delivery from $150 to $100.
As for Whole Foods orders, Amazon instituted a $9.95 charge on delivery purchases in September 2021. They were formerly given at no additional charge.
With this new subscription service, Prime members would no longer have to pay any of these fees if their delivery order exceeded $35. Amazon certainly believes that the membership will inspire users to place more orders without worrying about the expenses connected with each delivery.
The debut comes a month after Amazon announced that consumers across the United States will no longer need a Prime membership to get goods from Amazon Fresh for delivery or free pickup. At the time, Amazon indicated a comparable option would soon be offered to Whole Foods buyers. The shift makes Amazon more competitive versus competitors like Instacart, Walmart, and DoorDash.
Amazon has hundreds of fresh food stores around the United States and intensified its drive into the grocery industry by acquiring Whole Foods in 2017. However, its grocery business has dropped, possibly owing to competition. A study from The Information released last year found that Fresh shops were running empty and that store openings had stalled.
