Amazon's Doubling Down on Grocery Delivery
Amazon (NASDAQ: AMZN) just added a new perk to its Prime membership: free AmazonFresh grocery delivery. The service previously cost $14.99 per month on top of a Prime membership. AmazonFresh offers a selection of more mainstream products complementary to Whole Foods' higher-priced organic offerings. Providing access to the broader product selection with lower-priced options could give Amazon a boost in its battle against Instacart, Walmart (NYSE: WMT), Target, and other brick-and-mortar grocery stores.
Last month, Walmart introduced a new subscription service, Delivery Unlimited, that will offer unlimited same-day fresh and frozen grocery delivery for $98 per year. That price is in line with Target's Shipt service, which offers same-day grocery delivery from Target and several other local stores. Ultimately, Walmart's head of U.S. e-commerce sees Delivery Unlimited expanding to general merchandise delivery, which could pose a much bigger threat to Amazon Prime.
Image source: Amazon.
Source Fool.com
