Published: Fri, February 09, 2018
Markets | By Noel Gibbs

Amazon to deliver Whole Foods groceries in two hours for Prime users

Amazon to deliver Whole Foods groceries in two hours for Prime users

Amazon has started offering free two-hour delivery of Whole Foods Market products through Prime Now in selected USA markets. The company will roll out the service to more cities later in the year.

As part of the deal, Prime Now customers get free two-hour delivery of their shopping after spending more than $35. Amazon has announced the new expansion of its Prime Now service, which is available in certain markets where ultra-fast deliveries for certain items are possible.

"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". The bank wrote in a note to investors that 48% of people using Prime Now are ordering grocery items with it - more than they are ordering more traditional e-commerce offerings.

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That announcement was followed early Thursday by Target (NYSE: TGT) saying it would provide same-day delivery of its products through Shipt, a Birmingham, AL, startup the Minneapolis-based retailer bought for $550 million in December. The markets beginning the service tomorrow are Austin and Dallas, Texas; Cincinnati, Ohio; and Virginia Beach, Virginia.

The man who ran Amazon's Prime membership program will now be spending more of his time at Whole Foods. AMZN also notes that select alcohols are also available for free two-hour delivery.

Amazon plans to offer the service more broadly in the future. Amazon's new service, called Prime Now, hopes to deliver on that promise while delivering organic produce from Whole Foods. Since then, they've slashed prices during the holidays, streamlined inventory, added Whole Foods products to Amazon Fresh, and even opened up their own automated grocery store, Amazon Go.

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Some Whole Foods stores already offered delivery through a partnership with Instacart.

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