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Amazon makes grocery delivery free for Prime members



Before today, Amazon Prime members charged a $ 14.99 monthly subscription fee for their Amazon Fresh grocery delivery service. Two hours of Whole Foods delivery was free for many Prime customers through Amazon's Prime Now delivery app.

As of Tuesday, Amazon Fresh grocery delivery is free for Prime members who have previously used the grocery delivery service.

Amazon launches the new free service in stages: Prime members who have not yet ordered groceries can request an invitation. Amazon did not say when it will start to attract new grocery delivery customers.

The delivery minimum for the Amazon Fresh service is $ 50 in New York City and $ 35 in a majority of the other 2000 regions the service is available in.

Some changes are also coming to Whole Foods deliveries. Amazon announced Tuesday that customers will be able to purchase Whole Foods groceries through Amazon.com and the Amazon app, in addition to the Prime Now app. But new customers will have to wait for an invitation if they want groceries delivered from the chain via Amazon's website and app. New customers can order some items on Prime Now for a fee.

Amazon bought Whole Foods two years ago for $ 1
3.7 billion.
The company said in a press release that the delivery of groceries is one of the "fastest growing businesses." Amazon has several grocery options, including Prime Now delivery, Whole Foods and 20 Amazon Go stores. It is also developing a new chain of grocery stores.
But the $ 14.99 monthly fee – in addition to the $ 119 annual Prime membership – for its Amazon Fresh subscription service was a tough question for some Prime members.
The changes will help secure Amazon's position in the area, which has many competitors, including Instacart, Walmart, Kroger ( KR ) and FreshDirect.
Amazon's price reduction could put pressure on its biggest rival: Walmart ( WMT ) . The company requires a $ 98 annual grocery delivery fee. It also invests in the sector, including a new feature that allows Walmart employees to put groceries in customers' refrigerators while away from home. They also have more traditional delivery services.
Kroger is also investing in the sector with a delivery service it launched last year.

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