November 1, 2021
Amazon, which acquired Whole Foods in 2017, had previously offered free two-hour delivery for Prime members, but warned shoppers last month a new charge was coming.
The fee was put in place to help cover delivery operating costs like equipment and technology without raising product prices, a Whole Foods spokesperson told CNN Business. Whole Foods delivered three times as many orders in 2020 as it did in 2019, the spokesperson added, as the pandemic deepened customers’ dependence on delivery.
Although the fee is new, some Prime perks will remain, including free pickup on orders over $35 and exclusive discounts.
In an email to customers last week, Walmart announced that anyone who signed up for Walmart+—the retailer’s version of Prime—on Monday, October 25. would receive $9.95 back.
Walmart+ offers subscribers free grocery delivery, free shipping with no order minimum and contact-free checkout. The subscription costs $12.95 per month, or $98 for the year. Amazon prime costs $12.99 per month, or $119 for the year.
Research contact: @CNN