Whole Foods has been made available on Amazon Prime Now

Here's How Amazon Prime's New Whole Foods Delivery Will Work

The new deal went into effect on Thursday. The orders from Whole Foods, unlike regular orders at Amazon that are filled by employees at huge, fulfillment centers that are only devoted to order filling, will have pickers fill the order by going down each aisle in a Whole Foods location close to where the order originated.

While most Prime Now customers will likely opt for free delivery in two hours, those needing their orders more quickly can pay a $7.99 delivery fee to have them in an hour.

DISCUSSION QUESTIONS: What will the addition of Whole Foods to the Prime Now program mean for Amazon and the grocery chain?

The company started its reframing by pulling out an old supply chain practice called "order-to-shelf" where stores keep little to nothing on hand and depend on suppliers and distributors to bring in the requested items in small batches.

Barclays analysts, meanwhile, have closely followed Whole Foods in-store developments. Orders above $35 are delivered gratis if you hold an Instacart Express membership, which costs $149 per year.

Now, it's rolling out something new for Whole Foods patrons: two-hour delivery.

Here's How Amazon Prime's New Whole Foods Delivery Will Work
Amazon Will Now Deliver Whole Foods Groceries in 2 Hours

Whole Foods deliveries are now available from 8am to 10pm, and Amazon claims that customers will be able to shop for "thousands" of items.

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

Amazon is making it easier than ever to get your grocery shopping done. While limited to four regions at this point - Austin, Cincinnati, Dallas, and Virginia Beach - the offering marks a significant step forward in the online retailer's integration with Whole Foods.

The move is the latest by Amazon to put its stamp on its recent purchase of Whole Foods.

Grocery delivery is certainly not unique to Amazon, though. "People love to shop at Whole Foods for perishables, including seafood and bakery, and those categories don't lend themselves to delivery so well". In an email sent to Food Dive, Moody's lead retail analyst Charlie O'Shea called this the beginning of Amazon "unlocking" the true value of its acquisition. Amazon Flex drivers, who work in an Uber-like fashion, according to Fortune, will make deliveries using their own cars but relying on an Amazon map app. However, Amazon has big plans to roll this out nationwide very soon.

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