Whole Foods still has its own delivery system that services local areas around its store locations, but Amazon could fold that service into its own in the future. The markets beginning the service tomorrow are Austin and Dallas, Texas; Cincinnati, Ohio; and Virginia Beach, Virginia.
Amazon Prime members in the United States now get another benefit through their subscription - delivery of groceries from Whole Foods, straight to their doorstep. That enables shoppers to get much of what they can usually buy at a Whole Foods store delivered directly to their door in two hours. If you want those groceries in an hour, you'll have to spend at least $35 and pay an extra $7.99 delivery fee.
Yet, when a company the size of Amazon steps in, everyone takes notice.
Less than a year later, Amazon is just starting to give customers and competitors a taste of what it may do. "Together, we have already lowered prices on many items, and this offering makes Prime customers' lives even easier". Produce, baked goods, dairy, seafood, meat, flowers, pantry staples and some alcohols will be delivered through the service, according to the announcement. The service applies to all fresh and grocery products available in Whole Foods' stores, along with select alcoholic beverages.
Amazon has brought two-hour delivery to Whole Foods.
"Whole Foods' strength has always been in the fresh foods", Cerankosky said.
"A Prime Now flex driver can have five or more deliveries in their auto as they leave the fulfillment center", Goldberg wrote. Amazon is now the number one online seller of groceries, accounting for 18% of total sales, a Packaged Facts report notes. "It's much more expensive to make one delivery at a time, and hard to believe Amazon is going to subsidize those costs forever".