Amazon slashes price of same-day delivery
Amazon has removed the €14.99 per month charge for same-day delivery of groceries through both Whole Foods and Amazon Fresh, turning up the heat on its competitors in the highly contested space.
5 November 2019 | 0
The US online grocery market is intensely competitive not to mention highly lucrative, and Amazon has just turned up the heat on its competitors by making its same-day delivery option free for members. Previously, the superfast delivery option was a $14.99 per month extra, but the price slash is aimed at making the service more enticing in the face of competition from the likes of Walmart and a host of smaller players.
Through a combination of Amazon Fresh and the online giant’s ownership of the Whole Foods supermarket chain, Amazon’s grocery service covers an estimated 2,000 US cities.
“Prime members love the convenience of free grocery delivery on Amazon, which is why we’ve made Amazon Fresh a free benefit of Prime,” said Stephenie Landry, VP of grocery delivery. “Grocery delivery is one of the fastest growing businesses at Amazon, and we think this will be one of the most-loved Prime benefits.”
As is well known, the margins on grocery delivery are even smaller than in-store sales. However, the size of the market combined with the likelihood of repeat business on a permanent basis means that the prospects of the market, long term, are very strong.
Some customers may continue to be put off by Amazon due to its alleged mistreatment of staff.