Amazon Launches $10/Month 'Unlimited Grocery Delivery' Service in the US

Amazon, the world's largest e-commerce company, announced on the 7th (local time) that it will pilot a subscription service that offers unlimited delivery of groceries over a certain amount for a monthly fee.

[Image source=Reuters Yonhap News]

Amazon Prime members can pay $9.99 per month to receive unlimited delivery of groceries purchased for $35 or more from Whole Foods and Amazon Fresh. Whole Foods and Fresh are grocery stores operated by Amazon. Regardless of order size, a 30-minute pickup service is also available.

Amazon plans to pilot this service in three U.S. cities: Denver, Colorado; Sacramento, California; and Columbus, Ohio.

Tony Hoggett, who leads Amazon's offline stores, said, "We are always experimenting with new features to make shopping easier, faster, and more affordable," adding, "We look forward to hearing how members respond to this pilot program."

Amazon expects paid members to use the subscription service to save on delivery fees and purchase fresh food. Currently, Amazon Prime membership fees in the U.S. are $139 annually or $14.99 monthly, and an additional $9.99 is required to use the unlimited grocery delivery service.

It is analyzed that Amazon has taken this measure as delivery costs have increased due to rising labor costs. In October, Amazon adjusted the free delivery threshold for Fresh groceries from $100 to $150. Since May, Amazon has been offering $10 to paid customers who pick up their orders directly at designated locations such as Amazon Fresh or Whole Foods.