Groceries. Delivered free. Within 2 hours... That insanely convenient offering is now real for Amazon Prime members in America's top 20 cities (it's coming to 2K cities total, but not necessarily within 2 hours). Pulling that off is so logistically hard that only existing Amazon Fresh customers get it right now — 1st-timers will hit a waitlist so Amazon can assess how many grocery-dashing humans it needs to hire (spoiler alert: lots).
Will this finally make grocery delivery a thing?... Most Americans still grocery shop the ol'-fashioned way — by grabbing a shopping cart and blocking the aisle while squish-testing avocado firmness. Amazon's new offering eliminates 2 of the 3 big barriers to grocery delivery:
Don't try to beat Amazon on price. You'll lose... Last week we mentioned that Amazon's profits suffered because it insisted on beating Walmart and Target's 1-day shipping. Now its profits could suffer more (in the short-term) as it takes on those two in groceries plus Instacart and Good Eggs. Amazon's long-term plan: Get everyone to join Prime by offering the lowest prices/best deals, no matter what the cost.