Amazon, Inc. (NASDAQ: AMZN) said it is going to offer the delivery service for Whole Foods groceries through its fastest delivery option – Prime Now. Prime members of Amazon at Austin, Cincinnati, Dallas and Virginia Beach can get the groceries from Whole Foods delivered to the front doors in two hours for free when they spend over $35. There is also an “ultra-fast” one-hour delivery option which costs $7.99 for orders of $35 or more.
This service is now limited only to the four markets mentioned above, but Amazon said it is planning to expand this business across the U.S. this year.
After announced the deal to buy Whole Foods for $13.7 billion in June of last year, and closed the transaction in August, Amazon worked quickly on integrating the AmazonFresh, Prime Now and Whole Foods businesses. In November of last year, Amazon lowered prices at Whole Food for its Prime members, offered some of the grocer’s private label brands on its website, and also brought its own devices to the retail chain.
Those integrations of this e-commerce giant could boost not only the Whole Foods' business, but also Amazon’s Prime business, since they offered another reason for customers to buy Prime membership, which provides video and music streaming services along discounts on Amazon.com.