Amazon has begun providing its new grocery delivery service to consumers who aren’t Prime members. The company told consumers in an email Wednesday that the initial release would only be available.
NEW YORK (AP) — Amazon has begun offering its new grocery delivery service to consumers who are Prime members.
The initial launch will only take place in a dozen cities, plus Boston, Phoenix, Dallas and San Francisco, the company announced Wednesday to consumers in an email announcement.
Previously, Amazon offered grocery deliveries to Prime members, who pay $139 a year for faster shipping and other benefits.
Non-Prime members who wish to try 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 of orders between $50 and $100 will cost $10. 95 and orders over $100 will be charged $7. 95. The company said pickup orders are loose in some metropolitan areas.
Amazon operates 44 fresh food retail stores nationwide, most of which are located in California, Illinois, Virginia and Washington state. It also operates more than 20 cashierless convenience retail stores in the U. S. Purchased in 2017 for $13. 7 billion.
But despite its growing ambitions to be a major player in the industry, the company has struggled to find the right formula for its business and gain a significant percentage in the market away from competitors like Walmart and Kroger.
Neil Saunders, head of GlobalData Retail, said that, in theory, Amazon’s resolution to open grocery deliveries to non-Prime members makes sense because it broadens its visitor base, which is key to driving growth.
“However, given that Prime member penetration is incredibly high, the magnitude of the wreckage needs to be noted and it is very likely that additional adjustments will be required to move the business forward,” Saunders said in an emailed statement.
Meanwhile, the company also cut prices at some Amazon Fresh and Go retail outlets and cut many jobs as part of a restriction plan at its Whole Foods and Fresh food retail outlets. It also suspended the expansion of Fresh supermarkets because it aims to find the right formula that will allow it to grow its business.
In a blog post Wednesday, the company also gave a glimpse of two redesigned Fresh retail stores in Schaumburg and Oak Lawn, Illinois. He says the new format provides more product selections, lower costs on more items, and greater convenience when checkout. They also have Krispy Kreme Donut stores.
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