E-commerce giant Amazon.com has launched a new grocery delivery subscription in the United States for members of its Prime programme and customers who are recipients of the government food assistance benefits.
The subscription plan would allow Amazon's Prime members to get unlimited grocery delivery at $9.99 per month on orders over $35 from Whole Foods Market, Amazon Fresh, and other local grocery and specialty retailers on the platform, including Save Mart, Bartell Drugs, Rite Aid and Pet Food Express.
The service will be available in over 3,500 cities and towns across the country.
Reduced Fee
Low-income citizens, who rely on the government's Supplemental Nutrition Assistance Program (SNAP) to support their grocery budgets, would have to pay a reduced $4.99 fee per month for the same perks and do not require a Prime membership, according to the statement by Amazon.com.
The move comes as part of the company's efforts to expand its fresh-food business in a space already occupied by players like Walmart and Target, which also have paid membership programmes.
A Walmart Plus offers plans for $12.95 per month, or a yearly plan for $98.
Amazon's offering also includes one-hour delivery windows at no extra cost and unlimited 30-minute pickup on orders of any size.
The move comes after a successful trial of this subscription plan in Denver, Colorado, Sacramento, California, Columbus and Ohio last year, the company added.
Tony Hoggett, senior vice president of worldwide grocery stores at Amazon stated, “Our goal is to build a best-in-class grocery shopping experience—whether shopping in-store or online—where Amazon is the first choice for selection, value, and convenience.
“We have many different customers with many different needs, and we want to save them time and money every time they shop for groceries.”
News by Reuters, additional reporting by ESM.
