Amazon and Whole Foods announced the launch of free, two-hour grocery delivery through Prime Now in Los Angeles.
Whole Foods will deliver groceries including fresh produce and everyday staples to Prime members in the greater Los Angeles and Orange County areas—from Santa Monica to San Clemente along the coast to Pasadena and Yorba Linda in the east.
The service first launched in February and is now available in seven cities across the U.S., with plans for expansion.
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“We’ve been delighted with the customer response to free two-hour delivery through Prime Now, and we’re excited to bring the service to our Los Angeles area customers,” said Christina Minardi, Whole Foods Market executive VP of operations. “Today’s announcement is another way that we are continuing to expand access to our high-quality products and locally sourced favorites.”
Whole Foods will also deliver alcohol and two-hour delivery is free, but one-hour delivery is $7.99 for orders of $35 or more.
Since the launch of Prime grocery delivery, analysts have speculated about the rapid growth of Amazon's piece of the grocery market.
Although, according to a recent study, only 18% of consumers purchased groceries on Amazon in the past year, that number is expected to spike if the online giant fulfills its promise to lower Whole Foods prices for loyal customers.
"The Amazon acquisition of Whole Foods created a wake-up call for major groceries to ramp up their ship- to-home capabilities," said Bahige El-Rayes, a principal in the retail practice of A.T. Kearney, a global strategy and management consultant, and co-author of Can M&A Reignite Growth in Consumer and Retail?. "In the last 12 months, we are seeing major players aggressively grow in online (for example, Walmart online sales grew 23% in Q4 of 2017). This constitutes a key driver for Amazon to accelerate the growth into key markets such as Los Angeles."