E-commerce giant Amazon (AMZN) is testing a new grocery subscription service for its Prime members.
As part of the trial, existing Prime members are being given the option to pay an additional $9.99 U.S. per month to get unlimited grocery delivery from Whole Foods and Amazon Fresh on orders of more than $35 U.S.
Prime members also have access to 30-minute grocery pick-up on orders of any size. The new service is being trialed in the markets of Denver, Colorado; Sacramento, California; and Columbus, Ohio.
Amazon is betting that Prime members will want to pay an additional monthly charge for fresh food to be dropped at their residence without delivery fees.
A Prime subscription currently costs $139 U.S. per year, or $14.99 U.S. each month. Membership benefits include free same-day delivery on parcels and access to the company’s movie and TV streaming service.
Amazon has been working to become a player in the grocery industry since acquiring Whole Foods in 2017 for $13.7 billion U.S.
Over the last five years, the company has launched its own chain of Fresh supermarkets, and it has united its online and brick-and-mortar grocery operations.
Amazon’s stock has risen 71% in 2023 to trade at $146.88 U.S. per share.
