Amazon’s relentless challenge to other retailers in the U.S. has stepped up another gear with the news that the e-commerce giant plans to deliver groceries from Whole Foods Market via its fast-shipping Prime Now service.
Amazon announced today that it will start delivering Whole Foods items to select customers through Prime Now.
If you want to take advantage of the delivery service, all you have to do is head on over to Prime Now’s website or download the app.
CNBC reports Amazon is planning to expand the supermarket delivery offering across the US this year.
The e-commerce company acquired Whole Foods in June a year ago for $13.7bn. Many news outlets have reported that two-hour delivery is free with no minimums, while others have reported the more likely scenario – that a $35 minimum earns members free two-hour delivery and $7.99 one-hour delivery. According to e-commerce analysis firm One Click Retail, Whole Foods’ 365 Everyday Value brand items are now the second most selling private label brand on Amazon.
In the case of the Whole Foods pilot, employees will pick items from store shelves, and hand them off to a driver. Select alcohol is also available for delivery to customers. For example, a customer in Austin can shop at Sprouts Farmer’s Market, Amazon’s own shop, or Whole Foods. However, the Amazon Prime members will have to make sure that they make their orders between 8:00 a.m. and 10:00 p.m.
Amazon intends to extend the co-operation further broadly in the future. In addition to the Amazon and Target acquisitions, there has been a slew of recent deals: global retailer Walmart (NYSE: WMT) bought Parcel, Ikea purchased TaskRabbit, and Ace Hardware bought a majority stake in The Grommet. They cornered 18 percent of the entire grocery delivery market last month. Doing so allowed Amazon to integrate a number of Whole Foods products into their Prime Now line-up.
Amazon is unleashing its powerful delivery service on Whole Foods.
Less than a year later, Amazon is just starting to give customers and competitors a taste of what it may do. Per Landry, “we’re going to have a huge expansion ahead”.