Amazon.com, Inc. (NASDAQ:AMZN)announced that its Prime Now delivery service landed in Manhattan and Dallas, which are the the ninth and tenth biggest cities of the services.
Amazon first launched the meal delivery service in Seattle in September, 2015. After that, the services expanded to Los Angeles, Austin, Portland, Baltimore, San Diego, and Chicago. San Francisco was added last month as the service’s eighth city.
The meal delivery service is only available to members of Amazon Prime, which costs $10.99 a month or $99 a year. Users can place orders through Prime Now mobile app or by visiting the Prime Now website, and no delivery fees or service fees are charged on this orders.
Compared with competitors like Seamless, Caviar and Postmates, Amazon meal delivery service does not allow restaurant charge extra fees, and Amazon will charge restaurant 27.5% of each order, twice the charge of some competitors. The new meal delivery service will add pressure to competitors.
In Manhattan, more than 350 eateries joined Amazon’s meal delivery services, restaurant including well-known names such as Le Pain Quotidien, Blue Ribbon Fried Chicken and Wafels & Dinges. Over 60 eateries also participating Prime Now delivery in Dallas.
Adding delivery services to Amazon is a way to make Amazon Prime program more attractive. Currently, the prime program provides customers with free two-day shipping and same-day delivery in 27 metro areas.
An Amazon spokesman said that the services help restaurants to attract new customers and "takes the burden of delivery off a restaurant's back."
"We are excited to give our loyal patrons, as well as first time guests, another convenient way to enjoy their Fireside Pies favorites. It is important that our delivery provider emulates our unwavering dedication to product integrity and quality, and we are confident that we have found that with Amazon Restaurants." Kurtis Schart, the director of operations for Fireside Pies, a restaurant in the list, said in a statement.