Same-day delivery is also free for orders worth more than $25 for Prime members. If an order does not meet the minimum amount, subscribers can still choose same-day delivery for a $2.99 fee. For customers without a Prime membership, the service is also available with a $12.99 fee, regardless of the order size.
“When Amazon began to add perishable groceries like bananas, milk, eggs, and bread to its Same-Day Delivery service in regions like Phoenix, Orlando, and Kansas City, customers embraced the convenience,” Amazon wrote in a press release. “Strawberries, Honeycrisp apples, limes, and avocados now rank among the top 10 items in Same-Day Delivery carts.”, reported TechCrunch.
This move comes as Amazon has struggled to attract foot traffic to its physical stores. It is also worth mentioning that Amazon plans to expand the service to 2.300 cities by the end of the year.
Previously, Prime subscribers’ grocery orders were fulfilled through Amazon Fresh or Whole Foods Market, but they had to pay an additional $9.99 per month on their subscription in order to receive free deliveries for grocery orders that totaled more than $35, according to the information found on the company’s website. Now the additional service will have the ability to complete orders throughout its same-day delivery logistics network.
Blake Droesch, analyst with eMarketer said that “This marks a major expansion for Amazon’s digital grocery service, largely because it's being offered to its massive Prime member base at no additional cost," adding that "Notably, Amazon has lowered the minimum order threshold to just $25 - a move that directly threatens Instacart by enabling customers to use Amazon for quick, one-off purchases, a core part of Instacart's value proposition."
Brian Mulberry, the portfolio manager at Zacks Investment Management, said that the new offer is more likely to increase Prime’s membership, yet he added that the service is high-quality and it will be critical for growth, reported Reuters.
.webp)
.webp)
