Amazon delivers Whole Foods products in select U.S. cities

11 February, 2018, 05:42 | Author: Teresa Adams
  • Dallas and Austin first with Amazon Prime Now deliveries from Whole Foods stores

Whole Foods customers in a Prime Now service area can now get their groceries delivered in two hours for free.

For the moment, the new service is restricted to Austin, Texas - the home base of Whole Foods Market - as well as Dallas, Virginia Beach and Cincinnati in OH, but will be rolled out across the USA later this year.

Amazon has indicated it plans to roll out Whole Foods' Prime Now delivery to more cities this year.

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Amazon bought the Whole Foods market chain in June for $13.7 billion.

Whole Foods and Amazon are testing a service that provides two-hour delivery directly from Whole Foods stores. The 365 Everyday Value items at Whole Foods are now the second leading private label brand for Amazon.

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. However, the Amazon Prime members will have to make sure that they make their orders between 8:00 a.m. and 10:00 p.m.

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One question is whether Prime Now will make available for online purchase and delivery the complete inventory of the local Whole Foods or only a select subset. This the company's first major integration between its acquisition of Whole Foods and its e-commerce operations. That enables shoppers to get much of what they can usually buy at a Whole Foods store delivered directly to their door in two hours. Select cities will even be able to order alcohol. It will be interesting to see how the sales generated by this ad campaign feed into the increased volume of sales generated by customers now ordering Whole Foods groceries through Amazon Prime. Prime members, who pay a $99 yearly subscription, may place their order via the Amazon website or the Prime Now app.

It's unclear if Greeley's title will change or whether his appointment will affect Whole Foods CEO John Mackey's role.

"Prime now provides an nearly unparalleled service that digitally-native customers expect, driven by convenience, flexibility and, most importantly, immediacy". Grocery giants like Kroger have entered the fray with the help of Uber, and InstaCart helps carry the load for Safeway, Giant, Costco, Harris Teeter, and others in a variety of markets.

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