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Amazon begins offering Whole Foods deliveries via its Prime service

09 February 2018, 05:18 | Melanie Burgess

Business Image Source AP REX Shutterstock

Amazon Whole Foods delivery

The service was available as of Thursday in Austin and Dallas, Texas; Cincinnati, Ohio; and Virginia Beach, Virginia. Two-hour delivery is free or shoppers can opt for the super fast one-hour delivery for $7.99 on orders of $35 or more. They cornered 18 percent of the entire grocery delivery market last month.

The Prime Now integration won't affect Amazon's partnership with grocers and restaurants such as Whole Foods rival Sprouts Farmers Market, which also delivers through Prime Now, according to Stephenie Landry, VP of Prime Now/AmazonFresh.

The Whole Foods Market in Midtown New York is seen on June 16, 2017. Further, Amazon's website now has a Whole Foods online storefront. Buying data shows that Whole Foods' brand is one of Amazon's strongest weapons as it tries to take a bigger piece of the grocery pie. However, the current offer is only available in select areas. Whole Foods, which was founded almost four decades ago, has over 470 locations combined in the US, Canada, and United Kingdom.

Amazon dropped rates on few things at the 457 Whole Foods markets in the United States after the contract concluded. Amazon hasn't disclosed the number of Prime members, but market research firm CIRP estimates it to be over 90 million in the US alone.

Another challenge for Amazon: It is targeting suburban areas in middle America instead of large coastal cities like Boston and NY, where grocery delivery is already a way of life for millions.

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Online-to-home grocery delivery is nothing new. Amazon recently wrapped up its acquisition of grocery store chain Whole Foods and has now added it as an option on its Prime Now service.

Delivery from Whole Foods Market through Prime Now is available daily from 8 a.m.to 10 p.m.in select ZIP codes in the four cities.

The roll out in four cities is not to the scale of Amazon's huge logistics systems.

Barclays analysts, meanwhile, have closely followed Whole Foods in-store developments. This program will have a wide selection of Whole Foods items on offer - conceivably, almost the whole store could be stuffed into a Prime Now bag.



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