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An independent contractor wearing a protective mask and gloves loads Amazon Prime grocery bags into a car outside a Whole Foods Market in Berkeley, California on October 7, 2020.
David Paul Morris | Bloomberg | getty images
Amazon The company is testing a new grocery subscription for members of its Prime program, the company said Thursday, marking the latest recalibration of its online supermarket offerings.
Members of the company’s Prime program will have the option to pay $9.99 per month to receive unlimited grocery delivery from Whole Foods and Amazon Fresh on orders over $35. They will also get the facility of pickup within 30 minutes on orders of any size. To start, the service is launching in Denver, Colorado; Sacramento, California; and Columbus, Ohio.
Tony Hoggett, who leads Amazon’s physical store business, said in a statement, “We’re always experimenting with features to make shopping easier, faster, and more affordable, and we’re eager to hear how this offering works. “How members respond to the benefits.” ,
Amazon is betting that Prime members will be willing to pay the extra monthly fee to have fresh food delivered to their doorstep without any pesky delivery fees. A Prime subscription in the US costs $139 per year, or $14.99 per month, and membership benefits include free, instant shipping, and access to video streaming. With add-on grocery subscriptions, this offering can drive larger and more frequent ordering of food among Prime members.
Amazon has changed its fee-free delivery limits for fresh and whole foods orders in recent years amid rising costs. In October, the company lowered the limit for free fresh grocery delivery on orders over $100, after setting the minimum limit at $150 the month before. In 2021, the company introduced a $10 service fee for Whole Foods delivery orders for Prime members.
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