February 21, 2018

Amazon Prime lead will spend time with Whole Foods team

10 February 2018, 11:42 | Virginia Santiago

Amazon bought Whole Foods Market in 2017

Amazon Prime is rolling out Whole Foods two-hour grocery delivery

According to Amazon, this delivery feature is available starting today in Austin, Cincinnati, Dallas, and Virginia Beach.

Two-hour delivery will be free and a one-hour option will cost $7.99 on orders of $35 or more. The company has already partnered with various local retailers to deliver goods through Prime Now.

Deliveries will be available daily from 8am to 10pm. These drivers also deliver items for Amazon, Prime Now, Amazon Fresh, and Amazon Restaurants.

Amazon is bringing its delivery services to Whole Foods. I think there will be some appeal here, but it is going to be rather limited. "This is a super important space for fast delivery", Landry said. Whole Foods will continue offering store delivery through Instacart. And then there's the issue of keeping cold items cold, and frozen foods frozen. Getting those customers to link Amazon and groceries could further tie it into the nation's shopping habits and give it a bigger chunk of the more than $600 billion USA grocery market. It quickly got to work integrating the two businesses. That includes alcohol, with Amazon only stating, "Select alcohol is also available for delivery to customers".

"The suburban market has always been a conundrum for grocery delivery companies", Peterson said.

To take advantage of this perk, you'll need to rack up an order of at least $35, which let's be honest, is pretty easy at Whole Foods.

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This is Amazon's real threat in the space: Its ability to leverage the millions of shoppers who are already Prime members.

Despite the perceived upsides of the new inventory management model, the grocery giant's workers say they're having a hard time keeping up with the demands of Amazon's frantic pace.

"There's panic in the C-suite of every grocery chain in the country".

"Maybe sooner than you think", she said.

While shares of the major grocery stores fell Thursday on the news that Amazon is testing a two-hour grocery delivery service from Whole Foods, investors should see this as an opportunity to scoop up shares.

Customers must be members of Amazon's $99 yearly subscription Prime service to get the speedy deliveries.

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