Amazon is introducing a new low-cost grocery delivery subscription service, available for both Prime members and those using electronic benefit transfer (EBT) cards, across more than 3,500 locations in the United States.
The decision is a strategic move by the company to enhance its presence in the fresh-food market, where competitors such as Walmart and Target, which also offer subscription services, are already established. Walmart Plus provides subscription options at $12.95 per month or an annual fee of $98.
For $9.99 a month for Prime members, and $4.99 for EBT cardholders, subscribers can enjoy unlimited grocery delivery on orders over $35 from various retailers like Whole Foods Market, Amazon Fresh, and local stores on Amazon.com.
This service aims to simplify grocery shopping by providing convenient delivery and pickup options, one-hour delivery windows (where possible), unlimited 30-minute pickup for any order size, and priority access to recurring reservations for weekly grocery orders. It also offers unlimited delivery on orders over $35 from local grocery and specialty retailers including Cardenas Markets, Save Mart, Bartell Drugs, Rite Aid, Pet Food Express, and Mission Wine & Spirits.
In addition, Prime members shopping at Amazon Fresh and Whole Foods Market can access exclusive deals both online and in-store. Eligible Prime members can also earn unlimited 5% back on their purchases when using their Prime Visa online at Amazon.com or when shopping online or in-store at Amazon Fresh and Whole Foods Market.
Amazon tested the new service in select cities (Columbus, Ohio; Denver; and Sacramento) in late 2023, and the company says a recent survey of grocery subscribers from the pilot reveals that more than 85% of respondents are “extremely or very satisfied” with the unlimited free delivery benefit.
Some of the main perks of the subscription include special savings for Prime members at Amazon Fresh and Whole Foods Market. Amazon claims that, if you order from Whole Foods Market or Amazon Fresh, the subscription pays for itself “in as little as one delivery order per month.”
“This announcement reflects Amazon is continually innovating to build a best-in-class grocery shopping experience,” the company said in an announcement, “whether in store or online, grounded in the values Amazon is known for: price, selection, and convenience.”
Correction: An earlier version of this story misstated the spending amount necessary for the subscription to pay for itself.