Faster

Amazon triggers nuclear option: Free grocery delivery for Prime members

Snacks / Tuesday, October 29, 2019
_A scene yesterday from the grocery delivery wars_
_A scene yesterday from the grocery delivery wars_

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:

  • The cost barrier: Grocery delivery today features fees (Amazon's used to be $15/month on top of Prime). Plus tips.
  • The planning barrier: You typically need to know your fridge's shelf status at least 6 hours in advance. That's cut to 2 hours with Amazon's new offering.
  • The freshness barrier: Some of us undoubtedly still want to harvest our own produce and not risk someone grabbing the wrong almond milk.

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.

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