Amazon (AMZN) upped the amount Prime members will have to spend to get free grocery delivery via Amazon Fresh.
Beginning February 28, shoppers will need to spend $150 or more to receive free grocery delivery. That’s up from $35. Here are the new fees for orders less than that amount:
Amazon said the spike is to help keep grocery prices down amid inflation. “We’re introducing a service fee on some Amazon Fresh delivery orders to help keep prices low in our online and physical grocery stores as we better cover grocery delivery costs and continue to enable offering a consistent, fast, and high-quality delivery experience,” a spokesperson told Yahoo Finance in a statement.
In comparison, Amazon’s subsidiary Whole Foods, which it acquired for $13.7 billion in 2017, charges a $9.95 service fee, with additional fees for rush options.
Prime members will still need to choose a time slot for groceries. “We will continue to offer convenient two-hour delivery windows for all orders, and customers in some areas will be able to select a longer delivery window for a reduced fee,” Amazon noted.
Amazon Fresh started delivering groceries in 2007 and now has a fleet of physical storefronts in major U.S. cities and abroad, at which customers can walk in, scan their code, grab items, pack them into bags and leave, avoiding typical grocery store lines.
In December of 2022, The Information reported that the opening of Amazon Fresh stores were put to a halt as the e-commerce giant looked to cut costs.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected]
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