Amazon's relentless challenge to other retailers in the U.S. has stepped up another gear with the news that the e-commerce giant plans to deliver groceries from Whole Foods Market via its fast-shipping Prime Now service.
At the moment, the service is only available in certain neighbourhoods in Austin, Cincinnati, Dallas and Virginia Beach - but the company will add more cities to its roster throughout the year.
In this way, Amazon Prime members are now able to order groceries, and they can get their packages within one or two hours. Or if they want their items in an hour, they can pay $8. According to a report by The Wall Street Journal, Amazon plans to expand the service to other markets, but it's unclear how long the expansion will take. Further, Amazon's website now has a Whole Foods online storefront.
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Whole Food's 365 Everyday Value brand items are now the No. 2 best-selling private label brand on Amazon, according to e-commerce analysis firm One Click Retail. Select alcohol is also available for delivery to customers. This makes a lot of sense when you think that Amazon accounts for 37% of all online retail sales in the United Kingdom and 57% in America.
"Whole Foods' strength has always been in the fresh foods", Cerankosky said.
The orders will then be given off to Amazon Flex delivery operators. It'll include "the vast majority of things that people buy most frequently", Stephenie Landry, the vice president of Prime Now, told The Seattle Times.
Amazon has always prided itself on fast delivery options and made sure to incorporate that perk into Prime Now.