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Amazon, aligning closer with competitor grocery delivery options, is testing a $9.99 monthly subscription model earning Prime members unlimited delivery on Amazon Fresh and Whole Foods orders over $35.
Under the program being tested in three cities — Sacramento, California; Denver, Colorado; and Columbus, Ohio — subscribers also receive unlimited 30-minute pickup on orders of any size. The monthly fee comes on top of the cost of Prime membership ($14.99 per month or $139 per year).
The subscription simplifies the current grocery delivery setup, which calls for:
- Amazon Fresh: $9.95 delivery fee for orders under $50; $6.95 delivery fee for orders of $50 to $100; free delivery for orders over $100.
- Whole Foods: $9.95 delivery fee for all orders.
- Quick pickup: A $4.95 fee is charged at both Amazon Fresh and Whole Foods for rush pickup orders (30 minutes or less from order to pickup).
“We’re always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond,” said Tony Hoggett, Amazon’s senior vice president of worldwide grocery stores, in a media statement.
Among recent changes to its online delivery proposal, Amazon in February of this year hiked the minimum purchase required for Prime members to earn free deliveries on Amazon Fresh orders from $35 to $150, citing the need to hold prices down amid investments. In early October, the threshold was lowered to $100.
In August, Amazon began offering its Fresh grocery delivery service to customers who aren’t Prime members for the first time. Non-Prime customers pay $4 more per delivery order than Prime members.
Grocers continue to grapple with a variety of schemes to cover the costs of grocery delivery, especially managing logistics around perishables.
Other subscription programs include:
- Walmart+ ($98 a year) offers free same- or next-day grocery delivery with a minimum purchase of $35.
- Kroger’s Boost ($99 annually) offers free same-day delivery on orders of $35 or more. Boost members OK with getting next-day delivery of their groceries only pay $59 a year.
- Target’s Shipt ($99 annually) offers free same-day delivery for orders over $35.
- Albertson’s FreshPass ($12.99 monthly or $99 yearly) offers complimentary delivery for orders over $30 plus special credits and rewards tied to purchases.
- Instacart+ ($9.99 per month or $99 per year) offers free delivery on orders over $35, 5% credit back on eligible pickup orders, and reduced service fees on every order.