- Amazon broadens its Fresh grocery delivery service, opening it up to non-Prime customers in select cities.
- Amazon's CEO announces closure of some Fresh and Go stores and pauses further expansion, aiming to better the customer experience and the economics.
- The company plans to include more products in its Fresh delivery from Whole Foods and other grocery brands, in a bid to better unify the online shopping experience.
Amazon is set to broaden the horizons of its Fresh grocery delivery by extending its service to non-Prime customers in specific U.S. territories.
This news comes as a major game-changer for residents of a variety of cities like San Francisco, Boston, Nashville, and Austin, who can now enjoy the convenience of home delivery, albeit at a fee. For those procuring goods below $50, a $13.95 delivery charge applies. The cost drops to $10.95 for purchases between $50 and $100, while the hefty orders exceeding $100 will attract a lower fee of $7.95.
Back in the day, only the elite members who opted for Amazon's $139 annual Prime membership had the privilege of ordering groceries from Fresh. With its initiation in 2007, Fresh represented Amazon's first brave steps into the world of online grocery sales. Since then, the e-commerce powerhouse has kept its foot on the gas in this sector, even acquiring Whole Foods a decade later at a staggering price of $13.7 billion. Their ambition in the grocery market is further demonstrated by operating a Fresh supermarket chain and the Go cashierless convenience stores.
The journey, however, hasn't been all smooth sailing. Amazon grappled with harmonizing operations between Fresh and Whole Foods. A company-wide expenditure assessment led by CEO Andy Jassy resulted in the decision to close certain Fresh and Go stores and put a pause on further expansions. The goal was to establish a format that clicks with the customers and delivers financially viable results. Just last week, Amazon even reduced its workforce at Fresh grocery outlets.
Furthermore, Amazon made some adjustments to the delivery fee structure for Fresh grocery orders below $150 earlier this year, resulting in the removal of the previous free delivery perk for Prime members on orders above $35. This was a strategic move in response to escalating costs.
Looking forward, Amazon plans to make further significant modifications to its grocery business. One of the top agenda items is to make the Fresh delivery service available to non-Prime members across the nation and to include products from Whole Foods and other grocery brands. This is reported by Bloomberg, who also revealed Amazon's plans to enhance the online shopping experience of Whole Foods and Fresh.
Finally, to address criticisms about their stores being lackluster and detached, Amazon rolled out a refreshing new format for its Fresh stores on Wednesday. The pilot rollout, happening at Oak Law, Illinois, features a Krispy Kreme kiosk within the store and an expanded selection of goods.
WOM Money Picks
Be a part of the winning team | 81% Success Rate.