The delivery of groceries is becoming more common in the retail industry as Walmart partners with Postmates to expand its grocery delivery business across the U.S., and now Amazon has announced the same plan! Amazon has and Whole Foods Market has begun a free two-hour grocery delivery service in Los Angeles which marks the seventh city for their Amazon Prime Now service. Learn more about their expansion plans!
Amazon, which acquired Whole Foods in June 2017 for $13.7 billion, has since implemented many changes to the grocery chain including price cuts, selling Amazon tech in stores, and a switch to Amazon Prime as Whole Foods’ rewards program. Now, they are expanding their services for grocery delivery throughout more states!
Beginning April 10, 2018, Los Angeles-based Amazon members will be able to receive free two-hour delivery on Whole Foods orders, and one-hour delivery for $7.99 on orders totaling more than $35. Prime members across greater Los Angeles and Orange County – along with the coast from Santa Monica to San Clemente, Pasadena to the North and Yorba Linda to the East – can shop through Prime Now for bestselling items including fresh produce, high-quality meat and seafood, everyday staples and other locally sourced items from Whole Foods Market. This delivery service is currently offered daily from 8 AM to 10 PM.
Grocery delivery is predicted to get more competitive as demand for such services increases. Economists have projected a 70% usage of grocery delivery services as early as 2022. With this prediction, it’s very likely that this will encourage more businesses for grocery delivery start-ups, as most grocers will opt for partnerships to help them scale up quickly. But, Amazon is already setting the bar high for its two-hour delivery which makes speed a critical component for competition.
Moreover, the Whole Foods-Amazon Prime Now free two-hour delivery service is now offered in seven cities: Los Angeles; Atlanta; San Francisco; Austin, Texas; Cincinnati; Dallas; and Virginia Beach, Va. The service first launched in February 2018 and is now available in those seven cities with plans for continued expansion across the U.S. throughout the rest of the year. Customers can start shopping from Whole Foods Market selection at www.primenow.com or by using the Prime Now app available on Android and iOS devices.