Amazon has launched a new grocery delivery subscription for Prime members and customers with an EBT card (Electronic Benefit Transfer) in the U.S. The service is available in 3,500 eligible cities and towns. In addition, the company is expanding on its initial testing in Denver, Colorado; Sacramento, California; and Columbus, Ohio. The subscription costs $9.99 per month for Amazon Prime users and $4.99 per month for registered EBT card holders.
Benefits and Features of New Subscription by Amazon
Subscribers of this service receive free deliveries for grocery orders over $35 across Amazon Fresh, Whole Foods Market, and other local grocery and specialty retailers available on the Amazon site. Additionally, it includes Cardenas Markets, Save Mart, Bartell Drugs, Rite Aid, Pet Food Express, and Mission Wine & Spirit.
There are no fees for users with a 30-day free trial before being charged. The subscription offers one-hour delivery windows without any extra fee. In addition, it has an unlimited 30-minute pickup for orders of any size and priority access to recurring reservations for a weekly grocery as well.
Cost Efficiency and Competition
Amazon noted that the subscription “pays for itself” when customers place even one order per month from Amazon Fresh or Whole Foods Market with a total order value of under $50. This new offering puts Amazon in competition with Walmart Plus, which costs $12.95 per month or $98 per year, and Target’s free grocery delivery plan which costs $99 a year. Notably, all these plans share the same minimum order limit as Amazon’s grocery subscription plan.
Technological Shift by Amazon
In a recent development, Amazon replaced its “Just Walk Out” technology from its own store. Additionally, it allowed users to exit without a formal checkout process, with its Dash Cart. The Dash Cart can scan products when customers place items in the physical cart. Thus, this signifies a shift in the company’s technological approach to in-store shopping.
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Amazon’s foray into the grocery delivery space aims to provide a convenient and cost-effective service for consumers. However, the company competes with established players in the market.