undergroundnewsroom.com March 23, 2018

Amazon Prime Now Starts Delivering Whole Foods Groceries in Select Cities

09 February 2018, 05:20 | Gordon Grant

Dallas and Austin first with Amazon Prime Now deliveries from Whole Foods stores

Amazon’s Prime Now service is offering quick grocery deliveries from Whole Foods stores in Austin Dallas Cincinnati and Virginia Beach in a trial program that Amazon hinted would be expanded

Amazon is now the number one online seller of groceries, accounting for 18% of total sales, a Packaged Facts report notes.

Prime members will now be able to buy thousands of items from Whole Foods, including produce, bakery goods, dairy products, meat and more, CNBC said.

Greeley is the first high-profile Amazon executive known to be spending time at Whole Foods, the grocery chain Amazon bought for $13.7 billion previous year.

Amazon lowered its prices on certain items at its 457 Whole Foods Markets locations in the USA following the closing of the deal last summer. Naturally this is also an option available to Prime subscribers, which for $99 a year doesn't seem like a bad deal considering all the perks that you get.

Greg Greeley, VP of Amazon Prime and delivery experience, recently told some employees he'll be spending more time at Amazon-owned Whole Foods, focusing on the two companies' integration, CNBC has learned. For many, these investments were made in anticipation of this very move.

So how does the new service work? First, it should be noted that there's been some confusion over pricing.

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If two hours is too long a wait, customer can pay £6 ($8) to receive their groceries in under one hour, with orders of a £25 ($35) value or more. Food Dive has reached out to Amazon for clarification. Mehta argued that Amazon somehow sent a signal to the whole retail landscape when it chose to buy Whole Foods. Walmart, the country's largest grocer, has aggressively expanded its buy-online-pick-up-in-store option throughout the country and is eyeing same-day deliveries in NY.

Target purchased Instacart's rival Shipt for $550 million. An estimated 90 million Americans are Amazon Prime members.

Picking Dallas as a starting point, Amazon is going up against its largest competitors in the grocery business, including Walmart, the largest US grocer, and Kroger, the largest traditional supermarket chain.

The prospect has sent competitors off on a flurry of acquisitions and partnerships.

The e-commerce company acquired Whole Foods in June a year ago for $13.7bn.

"They will pick the items, put them in appropriate packaging to maintain the chill chain and pack them", said Landry.

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