Amazon Will Now Deliver Whole Foods Groceries Through Prime Now

Amazon Will Now Deliver Whole Foods Groceries Through Prime Now

United Kingdom customers can already order Whole Foods products via Prime Now, Amazon Fresh and Amazon Pantry delivery services.

Whole Foods delivery will only appear in four cities for now: Austin, Texas; Cincinnati, Ohio; Dallas, Texas; and Virginia Beach, Virginia.

Since then, they've slashed prices during the holidays, streamlined inventory, added Whole Foods products to Amazon Fresh, and even opened up their own automated grocery store, Amazon Go. Grocery giants like Kroger have entered the fray with the help of Uber, and InstaCart helps carry the load for Safeway, Giant, Costco, Harris Teeter, and others in a variety of markets.

It's unclear if Greeley's title will change or whether his appointment will affect Whole Foods CEO John Mackey's role. Combining Whole Foods' nationwide grocery footprint and selection with Prime Now's delivery logistics to provide free, two-hour delivery could prove an unbeatable combination. Mehta argued that Amazon somehow sent a signal to the whole retail landscape when it chose to buy Whole Foods.

Whole Food's 365 Everyday Value brand items are now the No. 2 best-selling private label brand on Amazon, according to e-commerce analysis firm One Click Retail. Select alcohol is also available. Interestingly, Austin-based Amazon customers can still make two-hour orders from Sprouts, one of Whole Foods' biggest competitors. Further, the research firm estimates that as of January, Amazon accounted for 18% of online grocery sales in the U.S.

Those integrations are all on the brick and mortar side, so today's integration offers a different angle that could boost the Whole Foods' business. For reference, Amazon acquired Whole Foods for almost $14 billion in 2017.

The announcement also coincides with the release of Whole Foods' first advertising campaign since its acquisition of Amazon. Amazon raised the monthly price of the service to $12.99 from $10.99 earlier this year.

Once a customer has placed an order, pickers-not necessarily Whole Foods employees-will manually collect the items from a nearby Whole Foods store and put them in "appropriate packaging".

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