Amazon (NASDAQ: AMZN) has launched a low-cost grocery delivery subscription benefit in the U.S. for members of its Prime program as well as customers using Electronic Benefits Transfer (EBT) cards. This subscription plan allows Prime members in over 3,500 cities and towns across the country to get unlimited grocery delivery at $9.99 per month on orders above $35 from Whole Foods Market, Amazon Fresh, and a variety of local grocery and specialty retailers on Amazon.com. The plan includes one-hour delivery windows at no extra cost, unlimited 30-minute pickup on orders of any size, and priority access to Recurring Reservations for weekly grocery orders. Low-income citizens who use registered EBT cards to claim benefits under the government’s Supplemental Nutrition Assistance Program can enjoy the same grocery subscription benefits without a Prime membership at a discounted subscription fee of $4.99 per month.
The launch follows a successful pilot of this subscription plan with Prime members in Columbus, Ohio; Denver, Colorado; and Sacramento, California in late 2023. It is part of Amazon’s efforts to expand its fresh-food business, as rival retailers Walmart (WMT) and Target (TGT) also offer similar paid membership programs. Walmart’s Walmart+ plan is available for $98 a year, while Target’s Circle 360 membership offers unlimited same-day delivery and other benefits at $49 for the first year. Amazon shares were up 0.58% premarket.
