Published: Sat, February 10, 2018
Hi-Tech | By Ellis Neal

Amazon Tests Two-Hour Grocery Delivery Via Whole Foods

Amazon Tests Two-Hour Grocery Delivery Via Whole Foods

Now, the grocery world will get a first-hand look at Amazon's strategy, with two-hour delivery available through its Prime Now service in Dallas and Austin, Texas; Virginia Beach, Virginia; and Cincinnati, Ohio. Can't wait two hours for your coconut oil to arrive? Twenty-three percent of consumers said they would purchase more groceries online if delivery times were more convenient, according to data from Walker Sands sent to Business Insider Intelligence, and one or two hours certainly fits the bill.

"There is a lot of runway, and we expect continued Prime penetration with Whole Foods customers", John Blackledge said in a research note.

However, Amazon will use a variety of methods to pick products, Stephanie Landry, VP of Prime Now, Amazon Fresh, and Amazon Restaurants, told USA Today, which suggests that Whole Foods employees will not always be involved in the process.

In the six months since Amazon acquired the organic grocer, the e-commerce giant has been mum about its plans for its ballyhooed push into brick-and-mortar food retail.

The initially small foray into same day delivery is just the beginning of what Moody's lead retail analyst Charlie O'Shea calls "unlocking" of the real value of the Whole Foods acquisition. So Amazon's goal to cut prices at Whole Foods, in addition to this new free delivery option for Prime members, might address these top concerns and drastically improve on the 18% number in 2018. If the service rolls out across Whole Foods stores, it will have another 475 locations to use for shipping orders, according to research from William Kirk, an analyst at RBC Capital Markets.

Now, at least in four cities, pressure will ramp up.

This announcement not only changes the shopping landscape for Amazon and Whole Foods customers, but for shopping in general.

The service will only be available during the hours the Whole Foods stores are open, generally 8:00 am to 10:00 pm.

For an extra $7.99, orders are guaranteed to be delivered within one hour.

Butchers formed the Amazon logo out of ground beef, which got a new, lower price, at the Whole Foods Market in the Playa Vista section of Los Angeles on September 25, 2017.

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