Amazon delivers latest Prime perk to Whole Foods’ curb
Amazon Prime members across the country may soon have a new way to get their groceries. The company announced it is rolling out grocery curbside pickup at Whole Foods in Virginia Beach, VA and Sacramento, CA.
Subscribers to Amazon’s program already have the option of receiving free Prime Now deliveries from Whole Foods within two hours of ordering in 24 markets across the U.S. Amazon plans to expand curbside pickup to Whole Foods locations already offering home delivery.
“Different customers have different needs,” Tanvi Patel, head of business development for Prime Now, told USA Today. “Customers prefer the convenience to pick up groceries on their way home, on their way to the park or on their way to a friend’s house.
Curbside pickup from Whole Foods is available between 8:00 in the morning and 10:00 at night. Prime members park in a designated area and mark their parking spot in the Prime Now app. Pickup is free on orders of $35 or more. Those with orders under $35 pay $1.99, while those who need to pick up groceries inside of 30 minutes pay $4.99.
Amazon and Whole Foods are relatively late to curbside pickup, with plenty of the retailers’ grocery competitors already offering a similar service. Amazon’s decision to offer the service, however, may have less to do with Kroger, Target, Walmart, etc. and more to do with its own Prime members.
Estimates put the percentage of Prime members who shop at Whole Foods at 20 percent. In June, Mark Mahaney, the lead internet analyst for RBC Capital Markets, told CNBC that as many as 30 million Prime members live near a Whole Foods, but don’t shop at their local store.
By offering added discounts and services such as home delivery and curbside pickup, Amazon is attempting to convert more of its Prime members into customers of its grocery chain. RBC’s Mahaney believes the result could be a doubling of Whole Foods’ customers within the next five to 10 years.
- Keep the engine running. Amazon announces new Whole Foods curbside pickup service – USA Today
- Amazon now lets you pick up Whole Foods orders from a store in 30 minutes without leaving your car – CNBC
- Amazon launches grocery pickup at select Whole Foods – TechCrunch
- Whole Foods Introduces Grocery Pickup for Online Orders – The Wall Street Journal
- Amazon Expands Grocery Delivery From Whole Foods Market To Fort Lauderdale, Miami, Palm Beach, Long Island And New York City – Amazon.com/Whole Foods Market
- Analyst: Prime perk could eventually double customers at Whole Foods – RetailWire
DISCUSSION QUESTIONS: What do you see as the keys for Amazon to attract Prime members to Whole Foods? Will free curbside pickup to be a significant draw for Prime members to shop at Whole Foods?