SEATTLE — Amazon.com Inc. will offer free two-hour grocery delivery to its Prime members, the company said on Tuesday. The move eliminates an additional $14.99 per month fee that Prime members previously had to pay to access the company’s Amazon Fresh grocery delivery service.“I think this offering is truly a game changer and that this is going to grow into one of the most beloved benefits of Prime,” Amazon vice president of grocery Stephanie Landry said.
Landry added that grocery delivery is already “one of the fastest-growing businesses at Amazon.”
Amazon plans to roll out the new Prime benefit in phases. Free grocery delivery is being offered first as an invitation-only service for Prime members who already use Amazon Fresh, or have ordered groceries from Whole Foods Markets. Other Prime members will be able to enroll in the program by requesting an invitation.
The new program will involve “tens of thousands of products,” according to Landry. Amazon offers grocery in about 2,000 U.S. markets.
Amazon is investing heavily in increasing its delivery capacity, as the company shifts the core benefit of its Prime subscription service from two-day to one-day shipping. After investing $800 million in each of the past two quarters to expand one-day delivery to more products and regions, Amazon expects to spend another $1.5 billion on the initiative in the current quarter, the company said when it reported its third quarter results.