Published: Sat, February 10, 2018
Economy | By

Amazon Prime to supply two-hour Entire Meals supply

Amazon Prime to supply two-hour Entire Meals supply

Amazon indicated that the offerings will include fresh produce, seafood, meat, flowers, baked goods, and dairy products. Orders must be worth at least $35. This is an incredibly important process for Amazon and Whole Foods to iron out, as consumers' leading reason for not using online grocery is that they want to pick their items themselves.

The Whole Foods Market in Midtown New York is seen on June 16, 2017.

For an extra $7.99, orders are guaranteed to be delivered within one hour.

"We're happy to bring our customers the convenience of free two-hour delivery through Prime Now and access to thousands of natural and organic groceries and locally sourced favorites", Whole Foods CEO John Mackey said. The purchase instantly made it the fifth-largest grocery retailer in the country, according to analysts at Cowen.

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.

The initially small foray into same day delivery is just the beginning of what Moody's lead retail analyst Charlie O'Shea calls "unlocking" of the real value of the Whole Foods acquisition.

Thomson Reuters Tomatoes are pictured at a Whole Foods store in San Diego. "We expect the entire Whole Foods network to ramp up for delivery in due course".

The four-city roll out is not quite on the scale of Amazon's massive logistics systems.

Whole Foods employees will not necessarily handle the selection process.

As an incentive, Acme offers shoppers $10 off plus free delivery on their first online order of $35 or more. These are Uber-like contract drivers who sign on for individual Amazon delivery shifts using their own cars but Amazon's routing app. At least four of the biggest chains - Wegmans, Giant, Acme, and ShopRite _ say they have been dialing up their delivery game in the previous year.

"We're going to have a huge expansion ahead", said Landry.

There are about 60 million households in the United States that use Amazon's Prime service, and only about 22 per cent of those shopped at Whole Foods in December, according to research from Cowen & Co.

Butchers formed the Amazon logo out of ground beef, which got a new, lower price, at the Whole Foods Market in the Playa Vista section of Los Angeles on September 25, 2017.

"If you place an order at 11:30 p.m. tonight, your groceries will be delivered to your house by 3 p.m. tomorrow", said Giant spokesman Christopher Brand.

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