Thursday, 13 December, 2018

Amazon delivers Whole Foods products in select USA cities

Amazon Prime is rolling out Whole Foods two-hour grocery delivery Amazon bought Whole Foods Market in 2017
Stacy Diaz | 09 February, 2018, 02:03

The new deal went into effect on Thursday.

This can be possible by visiting their account on Amazon website or via its Prime Now app.

Greg Greeley, VP of Amazon Prime and delivery experience, recently told some employees he'll be spending more time at Amazon-owned Whole Foods, focusing on the two companies' integration, CNBC has learned.

While the option is now available in just four markets, Amazon says that it plans to expand it nationwide this year.

The announcement is just the latest in the integration by Amazon of the grocery store chain that is known for its high end organic products that Amazon purchases for $13.7 billion in June of a year ago.

Once packed, the orders will then be handed off to Amazon Flex delivery drivers.

It's unclear if Greeley's title will change or whether his appointment will affect Whole Foods CEO John Mackey's role. However, this one will cost them $7.99 in shipping and they must order at least $35 worth of goods first.

Amazon and Whole Foods said select alcoholic beverages are also available for delivery, and the two-hour delivery service is free. Fresh produce, meat, seafood, and some alcohol will be available, but not all Whole Foods items are eligible for quick delivery.

The Whole Foods purchase instantly made it the fifth-largest grocery retailer in the country, according to analysts at Cowen. It will be interesting to see how the sales generated by this ad campaign feed into the increased volume of sales generated by customers now ordering Whole Foods groceries through Amazon Prime. The option is only available in four markets for now, but Amazon plans to expand it nationwide.

About 7 percent of US households bought groceries online past year, according to NPD Group.

Some Whole Foods stores already offered delivery through a partnership with Instacart.

That is now possible with items from Whole Foods stores located in certain neighborhoods in Cincinnati, Virginia Beach, Austin, and Dallas. Per Landry, "we're going to have a huge expansion ahead".