AmazonFresh takes huge step in competition with Walmart’s online grocery

Watch out, Walmart. AmazonFresh is coming.

The Seattle-based company is dropping the $14.99/month subscription fee for Amazon Prime members in a vast expansion of the service.

Stephenie Landry, vice president of grocery delivery for Amazon said in a statement quoted by MarketWatch grocery delivery is “one of the fastest-growing businesses at Amazon,” and that the company is “at a turning point for fresh groceries,” when it comes to customer willingness to order online.

AmazonFresh is reportedly now available in 2,000 cities, and is slated to expand to more geographic areas, and offer 1- and 2-hour delivery (for a fee) fulfilled by Whole Foods Market. For now, Amazon customers have to request an invitation to shop Amazon Fresh and Whole Foods Market.

The company says the invitations and wait list are “in order to provide a great service to each customer, Amazon Fresh and Whole Foods Market are available by invitation only at this time. Once you are able to shop, we will notify you and remind you to sign up for a Prime membership in order to shop.”

AmazonFresh launched in 2007 in Seattle and the company has been experimenting with it since. In 2017, after Amazon acquired Whole Foods, the company scaled back the service in markets across the country.

The service initially was offered for $99 plus delivery fees. Then, it increased to $299/year with no delivery fees before changing to a $14.99/month fee in 2016.

Amazon Prime is one of the most popular features the company offers, with a $119/year or $12.99 a month, and offers complimentary next-day delivery on select items. Amazon has more than 100 million Prime members across the globe.

Amazon’s move comes in the wake of Walmart successes with e-commerce. The Bentonville, AR-based retailer BB #:143789 is the largest in online grocery and plans to offer same-day grocery delivery at 1,600 stores and grocery pickup from 3,100 stores by the end of the year.

A recent Packaged Facts report predicts Amazon will overtake Walmart as the world’s largest retailer in 2022, but the report also noted Walmart’s dominance in online grocery.

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