AmazonFresh is a grocery delivery and pickup service only in select cities worldwide. Currently, Prime Members can get a subscription to AmazonFresh for an additional $14.99 per month. Amazon started this service in 2017 in the United Kingdom and has expanded the service to more than 300 postcodes across the U.K. The service even offers delivery in less than one-hour from 7 a.m. to 11 p.m. all week.
“We’re thrilled to introduce AmazonFresh to Prime members in Houston, Minneapolis and Phoenix,” said Stephenie Landry, Vice President of AmazonFresh and Prime Now, in a press release. “Prime members tell us they want their stuff even faster. We’re happy to deliver on that ask and can’t wait for customers in Houston, Minneapolis and Phoenix to take advantage of one- and two-hour delivery from AmazonFresh.”
Amazon touts that customers who order groceries at lunch can have them delivered just in time for dinner. The service offers more than 180,000 fresh and local products that consumers can have delivered right to their door.
According to the release, customers in Houston can even purchase beer and wine online. Amazon is even offering a limited 30-day free trial of the service and $10 off the first order of $35 or more. According to Grocery Dive, this is the second expansion of AmazonFresh since June. The company expanded to Las Vegas in June.
E-commerce grocery deliveries, especially in large cities has proven successful for some entrepreneurs such as Walmart and Target. Additionally, Grocery Dive suggests that with Houston, Minneapolis and Phoenix’s multiple Whole Foods locations.
“Another essential component for AmazonFresh to succeed is for Amazon to establish the necessary infrastructure to fulfill fresh grocery orders,” Grocery Dive wrote. “That could mean utilizing more Whole Foods locations for fresh food, adding more fresh fulfillment centers or adding more AmazonFresh Pickup locations, which launched in Seattle in 2017 but haven’t expanded since. As of now, it’s unclear how many fresh fulfillment centers the company has and where they operate.”
According to CNBC, Amazon is one of five different grocery delivery service providers out there, such as Boxed, Fresh Direct, Instacart and Peapod. With the competition for grocery delivery expanding, Amazon’s delivery service costs and promotional discount may end up being a good deal for current Prime Members, but not a good deal for those who don’t have a membership.