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Amazon rolls out grocery delivery subscription for Prime members

EditorAhmed Abdulazez Abdulkadir
Published 04/23/2024, 07:01 AM
© Reuters.

SEATTLE - Amazon (NASDAQ: AMZN) has launched a new grocery delivery subscription service for Prime members in over 3,500 U.S. cities and towns, offering unlimited deliveries for monthly orders over $35 from Amazon Fresh, Whole Foods Market, and other local retailers. The service is priced at $9.99 per month and includes additional benefits such as one-hour delivery slots and unlimited 30-minute pickup on any size orders.

The subscription is also available to non-Prime customers who have a registered Electronic Benefits Transfer (EBT) card, at a discounted rate of $4.99 per month. Amazon aims to provide more value and savings on delivery fees with this service, especially for customers who order groceries regularly.

Tony Hoggett, Amazon's senior vice president of worldwide grocery stores, stated that the company is striving to create a top-tier grocery shopping experience, prioritizing customer convenience. The service is designed to cater to diverse customer needs, saving them time and money with each grocery purchase.

In addition to the unlimited delivery service, Prime members will continue to enjoy exclusive savings at Amazon Fresh and Whole Foods Market stores. For EBT cardholders, the discounted subscription fee reflects Amazon's effort to make grocery shopping more affordable for low-income customers.

The grocery delivery subscription also extends to orders from local grocery and specialty retailers such as Cardenas Markets, Save Mart, Bartell Drugs, Rite Aid (NYSE:US90274J5618=UBSS), Pet Food Express, and Mission Wine & Spirits, where available. Subscribers benefit from convenient delivery and pickup options, including priority access to weekly grocery order reservations.

Amazon conducted a pilot of the grocery subscription in select cities in late 2023, with more than 85% of surveyed participants expressing high satisfaction with the free delivery benefit. The subscription's cost can be offset by as little as one delivery order per month from Whole Foods Market or Amazon Fresh.

This initiative is part of Amazon's ongoing innovation to enhance customer experience in grocery shopping, both online and in physical stores. The company's portfolio includes Whole Foods Market, Amazon Fresh, and Amazon Go, as well as partnerships with other retailers globally.

The information in this article is based on a press release statement from Amazon.com (NASDAQ:AMZN), Inc.

InvestingPro Insights

As Amazon (NASDAQ: AMZN) expands its grocery delivery subscription service, the company's financial health and market performance continue to be of interest to investors. With a robust market capitalization of $1.84 trillion USD, Amazon stands as a titan in the Broadline Retail industry. This is further underscored by its significant revenue growth, which was reported at 11.83% for the last twelve months as of Q1 2023. The company's commitment to innovation and customer service is mirrored in its financials, with a high gross profit margin of 46.98% indicating efficient operations and strong pricing power.

An InvestingPro Tip reveals that Amazon is trading at a high earnings multiple, with a P/E ratio of 60.2 and an adjusted P/E ratio for the last twelve months of Q1 2023 at 62.43. This reflects the market's optimistic view of Amazon's future earnings potential. Additionally, Amazon has demonstrated a high return over the last year, with a 65.7% price total return, showcasing the company's strong performance in the eyes of its investors.

For those looking to delve deeper into Amazon's financials and market performance, there are more InvestingPro Tips available, providing insights into aspects such as the company's debt levels, valuation multiples, and analysts' profitability predictions. Interested readers can explore these tips and more on InvestingPro, and by using the coupon code PRONEWS24, they can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 11 additional tips listed in InvestingPro, investors have a wealth of information at their fingertips to make more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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