Amazon unveils grocery delivery via Whole Foods chain


He said that while the move may eventually force grocery retailers to narrow the window of time to deliver goods, it does not mean customers will immediately rush into this service.

Amazon will be offering free two-hour delivery of Whole Foods products to Amazon Prime customers in select cities starting Thursday.

Amazon plans to start delivering groceries from Whole Foods within two hours to four USA cities.

By diving further into groceries, Amazon is pitching itself against the largest grocer in the U.S. - Wal-Mart - and the largest traditional supermarket chain - Kroger. Amazon and Whole Foods plan to expand this feature "across the USA in 2018". If you want those groceries in an hour, you'll have to spend at least $35 and pay an extra $7.99 delivery fee. For example, a customer in Austin can shop at Sprouts Farmer's Market, Amazon's own shop, or Whole Foods. The company made a decision to pair up with local retailers to be able to deliver goods to their customers via Prime Now. The 365 Everyday Value items at Whole Foods are now the second leading private label brand for Amazon.

One of the biggest stories to emerge from the technology industry past year was Amazon's shift into the brick-and-mortar realm with its $13.7 billion acquisition of organic supermarket chain Whole Foods. Amazon hasn't disclosed the number of Prime members, but market research firm CIRP estimates it to be over 90 million in the USA alone. For Prime subscribers living in the area where Whole Foods Prime Now service is available, you can head on over to the Prime Now website to place your orders.

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More recently, ShopRite stores serviced by Wakefern instituted ShopRite from Home, with delivery provided by individual stores.

Amazon dropped rates on few things at the 457 Whole Foods markets in the United States after the contract concluded.

Barclays analysts, meanwhile, have closely followed Whole Foods in-store developments. "They will pick the items, put them in appropriate packaging to maintain the chill chain and pack them".

Grocery delivery is certainly not unique to Amazon, though.