Amazon Now Delivers Whole Foods in One Hour

11 February, 2018, 05:39 | Author: Dave Hampton
  • Amazon’s Prime Now service is offering quick grocery deliveries from Whole Foods stores in Austin Dallas Cincinnati and Virginia Beach in a trial program that Amazon hinted would be expanded

Out of booze? No worries; "select alcohol is also available for delivery to customers", according to Amazon and Whole Foods.

Customers in neighborhoods in Austin, where Whole Foods is based, Cincinnati, Dallas and Virginia Beach can take advantage of the service.

No plans have yet been announced to introduce the initiative in the United Kingdom, but the initiative is expected to cross the pond within the coming year. Amazon Prime members will be able to order groceries for delivery within one or two hours; two-hour delivery is free, while one-hour delivery costs $7.99 on orders above $35.

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Stephenie Landry, the Amazon vice president in charge of the Prime Now express delivery service, confirmed to the Journal that Amazon's partnership with Sprouts Farmers Market and other retailers would continue.

In the six short months since its purchase of Whole Foods, Amazon has set out to change how grocers do business. During the holiday season, Amazon even came up with pop-up stores at Whole Foods locations to offer customers an experience of the devices and learn more about Prime.

The grocery store chain, now owned by Amazon, will deliver its products via Amazon's Prime Now Service, which delivers products in under two hours.

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The announcement is the latest in Amazon's integration of the Whole Foods Market chain of high-end organic supermarkets, which it agreed to buy in June for $13.7 billion. It will be interesting to see how the sales generated by this ad campaign feed into the increased volume of sales generated by customers now ordering Whole Foods groceries through Amazon Prime.

This is Amazon's real threat in the space: Its ability to leverage the millions of shoppers who are already Prime members. Or if they want their items in an hour, they can pay $8. Further, Amazon's website now has a Whole Foods online storefront. In an email sent to Food Dive, Moody's lead retail analyst Charlie O'Shea called this the beginning of Amazon "unlocking" the true value of its acquisition.

Barclays analysts, meanwhile, have closely followed Whole Foods in-store developments. Whole Foods is now an option in select cities.

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