AP

Amazon begins offering grocery delivery for customers who are not Prime members

Aug 3, 2023, 5:48 AM | Updated: 6:44 am

FILE - An Amazon Fresh grocery store in Warrington, Pa., April 28, 2022. Amazon has begun offering ...

FILE - An Amazon Fresh grocery store in Warrington, Pa., April 28, 2022. Amazon has begun offering its Fresh grocery delivery service to customers who aren’t Prime members. The initial rollout will only be available in a dozen cities, including Boston, Phoenix, Dallas and San Francisco, the company told customers Wednesday, Aug. 2, 2023, in an emailed announcement. (AP Photo/Matt Rourke, File)
Credit: ASSOCIATED PRESS

(AP Photo/Matt Rourke, File)

Amazon has begun offering its Fresh grocery delivery service to customers who aren’t Prime members.

The initial rollout will only be available in a dozen cities, including Boston, Phoenix, Dallas and San Francisco, the company told customers Wednesday in an emailed announcement.

Previously, Amazon had only offered grocery deliveries for Prime members, who pay $139 a year for faster shipping and other perks.

Non-Prime members who’re interested in trying out the service will pay $13.95 for deliveries under $50. That’s $4 more than Prime members have to pay for the same order size.

Deliveries for orders between $50 and $100 will cost $10.95, and orders over $100 will incur a $7.95 fee. The company said pick-up orders are free from select metro areas.

Amazon operates 44 Fresh grocery stores across the country, most of which are located in California, Illinois, Virginia and Washington state. It also operates more than 20 cashier-free convenience stores in the U.S. under the Amazon Go brand and owns Whole Foods, which it purchased in 2017 for $13.7 billion.

But despite its growing ambitions to be a major player in the sector, the company has encountered challenges finding the right formula for its business and gaining significant market share away from competitors like Walmart and Kroger.

Neil Saunders, managing director of GlobalData Retail, said that in theory, Amazon’s decision to open up grocery deliveries for non-Prime members makes sense since it enlarges its customer base, which is critical to drive growth.

“However, given that Prime membership penetration is extremely high, the scale of the upside remains to be seen and it is likely that further changes will be needed to help move the business forward,” Saunders said in an emailed statement.

Meanwhile, the company has also been trimming costs by closing some Amazon Fresh and Go stores and cutting hundreds of jobs as part of a restricting plan across its Whole Foods and Fresh grocery stores. It has also paused expansion on Fresh supermarkets as it aims to find the right formula that will allow it to scale its business.

In a blog post on Wednesday, the company also provided a look into two redesigned Fresh stores in Schaumburg and Oak Lawn, Illinois. It says the new format provides more product selections, low prices on more items and greater convenience during checkout. They also feature Krispy Kreme Doughnut shops.

AP

Seattle non-profits...

Associated Press

Oregon man convicted of murder in fatal shooting of sheriff’s deputy in Washington state

A jury has convicted an Oregon man of murder in the fatal shooting of a sheriff’s deputy in Washington state.

13 hours ago

Image: Former U.S. President Donald Trump speaks to a crowd during a campaign rally on Monday, Sept...

Associated Press

Judge rules Donald Trump defrauded banks, insurers while building real estate empire

A judge ruled Tuesday that Donald Trump committed fraud for years while building the real estate empire that catapulted him to fame and the White House.

1 day ago

FILE - The Amazon logo is displayed, Sept. 6, 2012, in Santa Monica, Calif. Amazon's profitable clo...

Haleluya Hadero, Associated Press

Amazon sued by FTC and 17 states over allegations it inflates online prices and overcharges sellers

The FTC filed an antitrust lawsuit against Amazon on Tuesday, alleging the e-commerce behemoth uses its position in the marketplace to inflate prices

1 day ago

KYIV, UKRAINE - 2022/09/03: A man looks at an image generated based on the stories of displaced chi...

Associated Press

Tech companies try to take AI image generators mainstream with better protections against misuse

Artificial intelligence tools that can conjure whimsical artwork or realistic-looking images from written commands started wowing the public last year. But most people don't actually use them at work or home.

2 days ago

Image: Actor David McCallum attends an event for "NCIS" during the 2009 Monte Carlo Television Fest...

Associated Press

David McCallum, star of hit series ‘The Man From U.N.C.L.E.’ and ‘NCIS,’ dies at 90

Actor David McCallum, who was the eccentric medical examiner in the popular "NCIS," has died. He was 90.

2 days ago

FILE - COVID-19 antigen home tests indicating a positive result are photographed in New York, April...

Associated Press

Biden administration announces $600M to produce and distribute COVID tests

The Biden administration announced Wednesday that it is providing $600 million in funding to produce new at-home COVID-19 tests and is restarting a website allowing Americans to again order up to four free tests per household

2 days ago

Sponsored Articles

Swedish Cyberknife...

September is Prostate Cancer Awareness Month

September is a busy month on the sports calendar and also holds a very special designation: Prostate Cancer Awareness Month.

Ziply Fiber...

Dan Miller

The truth about Gigs, Gs and other internet marketing jargon

If you’re confused by internet technologies and marketing jargon, you’re not alone. Here's how you can make an informed decision.

Education families...

Education that meets the needs of students, families

Washington Virtual Academies (WAVA) is a program of Omak School District that is a full-time online public school for students in grades K-12.

Emergency preparedness...

Emergency planning for the worst-case scenario

What would you do if you woke up in the middle of the night and heard an intruder in your kitchen? West Coast Armory North can help.

Innovative Education...

The Power of an Innovative Education

Parents and students in Washington state have the power to reimagine the K-12 educational experience through Insight School of Washington.

Medicare fraud...

If you’re on Medicare, you can help stop fraud!

Fraud costs Medicare an estimated $60 billion each year and ultimately raises the cost of health care for everyone.

Amazon begins offering grocery delivery for customers who are not Prime members