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Amazon is dropping its $14.99 a month Amazon Fresh fee for Prime members. This means Prime subscribers in the 2,000 U.S. cities where the fresh food delivery service is offered can use it for free. They can also take advantage of the new one- and two-hour delivery windows.
People can sign up on Amazon’s website, but they will have to wait for an invitation. Amazon believes this will be a “popular benefit.”
Amazon has been experimenting with the Amazon Fresh pricing for some time. Initially, it cost $99 a year, plus delivery fees, then it was $299 a year including delivery fee. The service has been $14.99 a month since 2016. It is bundled with Prime making it a decent value.
The new change will be automatic for current Fresh subscribers. Prime members who are not shopping with the grocery delivery service need to request an invitation to enroll in Whole Foods or Amazon Fresh delivery.
Engadget reports that Amazon will lose out on some subscription revenue, however, the move may encourage more people to use the service. It is here that Amazon will be able to recoup any losses.
The company has not revealed any details on the number, but it has stated that grocery delivery is “one of the fastest growing businesses at Amazon.” The company faces stiff competition with Walmart, Postmates, and Doordash. Additionally, it the U.K. grocery stores offer this as a standard service. This would explain why Amazon is pushing this service extra hard.
Recently, Giant Food rebranded its Peapod delivery service to Giant Delivers. They offer next-day home delivery and same-day delivery in downtown Washington. Giant charges $99 annually for unlimited deliveries.
Walmart’s unlimited grocery delivery is $98 a year and Target’s customers who are enrolled in the Shipt service, for $99 annually, receive free deliveries.
By Jeanette Vietti
Engadget: Amazon Fresh deliveries are now free for Prime members
wtop: Whole Foods, Amazon Fresh delivery now free in DC area
Vox: Amazon’s new plan to dominate grocery delivery: making AmazonFresh totally free for Prime members
Image Courtesy of simone.brunozzi’s Flickr Page – Creative Commons License