Amazon Expands Fresh Grocery Delivery in Select Metro Areas

NEW YORK (NEWSnet/AP) — Amazon has begun offering its Fresh grocery delivery service to customers who aren’t Prime members.
The initial rollout will be available in a dozen cities, including Boston, Phoenix, Dallas and San Francisco, the company said Wednesday in an emailed announcement. Previously, Amazon had only offered grocery deliveries for Prime members, who pay $139 a year for faster shipping and other perks.
Non-Prime members interested in trying out the service will pay $13.95 for deliveries under $50. That’s $4 more than Prime members have to pay for the same order size.
Deliveries for orders between $50 and $100 will cost $10.95, and orders over $100 will incur a $7.95 fee. The company said pick-up orders are free from select metro areas.
Amazon operates 44 Fresh grocery stores across the country, most of which are located in California, Illinois, Virginia and Washington state. It also operates more than 20 cashier-free convenience stores in the U.S. under the Amazon Go brand and owns Whole Foods, which it purchased in 2017 for $13.7 billion.
Neil Saunders, managing director of GlobalData Retail, said that in theory, Amazon’s decision to open up grocery deliveries for non-Prime members makes sense since it enlarges its customer base, which is critical to drive growth.
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