Amazon Tests Two-Hour Grocery Delivery Via Whole Foods

Ivan Schwartz
February 11, 2018

And customers could get rewards for their participation as well.

Prime Now, Amazon's one- and two-hour delivery service, started late Wednesday offering deliveries of a range of items picked from Whole Foods shelves in Austin and Dallas, Texas; Cincinnati; and Virginia Beach, Va. The entire store inventory is not yet online, and deliveries are only available during local store hours.

The delivery service will be particularly easy for those customers who have annual subscription of Amazon Prime as they will be able to use that account to shop for items which are stocked or available in nearby stores of Whole Foods and the payment will be made through Amazon or Prime Now. He will mainly focus on the Amazon Prime Whole Foods' customer rewards program.

A 19-year veteran at Amazon, Greeley has spent the last four years running Prime. He assumed responsibility for Prime four years ago after holding executive roles in Amazon's finance and worldwide businesses. Amazon does not mention just what types "select alcohol" are covered. So Amazon's goal to cut prices at Whole Foods, in addition to this new free delivery option for Prime members, might address these top concerns and drastically improve on the 18% number in 2018. This program will have a wide selection of Whole Foods items on offer - conceivably, almost the whole store could be stuffed into a Prime Now bag. Amazon Prime Now currently has about 50 distribution centers it uses to ship orders to its urban customers. These drivers also deliver items for Amazon, Prime Now, Amazon Fresh, and Amazon Restaurants. Now, the company is looking to set new standards in grocery delivery. An employee will pick the products for a customer's order and pack them in a way that maintains their freshness.

Here's the idea: Instead of stocking Whole Foods groceries in a warehouse and starting Prime Now deliveries from there, the new program uses a Whole Foods store as a depot.

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"One of the biggest things holding back online grocery is the option of free delivery and the speed", Waral said.

The survey was done before the Whole Foods acquisition's close and before its products were put on Amazon, so it's possible that adoption has increased even more.

And there remain barriers to Amazon's plan.

Thomson Reuters Tomatoes are pictured at a Whole Foods store in San Diego. The risks I see include: delivering consistent, high quality fresh product, held at the right-variable- temperatures, on time and affordably, without incident.

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