Amazon adds annual grocery delivery subscription option
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Amazon Prime members can choose to add a grocery delivery plan to their membership. Photo: Lindsey Nicholson/UCG/Universal Images Group via Getty Images
Amazon is offering a new annual $99.99 grocery delivery plan as an optional add-on subscription for Prime members.
Why it matters: Companies have been increasingly adding more options — and surcharges — on top of the regular subscription fees they already charge.
- The trend comes as consumers are feeling subscription fatigue and facing additional fee hikes and membership increases.
Amazon Prime grocery delivery plan
Driving the news: Amazon announced the new annual option for unlimited grocery deliveries Wednesday, which follows the April launch of the $9.99 monthly benefit add-on.
- The benefit works on orders over $35 from Whole Foods Market, Amazon Fresh and local grocery and specialty retailers available on Amazon.com.
- It includes one-hour delivery windows at no extra cost where available and unlimited free 30-minute pickup on orders of any size, Amazon said.
- It's available in more than 3,500 cities and towns across the U.S.
State of play: The annual plan offers Prime members two months free over the monthly plan, which is still available for $9.99.
- The company confirmed to Axios that Prime members can get a 30-day trial of grocery deliveries "if they sign up for either the monthly or annual plan for the grocery delivery subscription."
Amazon Grocery delivery for EBT, Prime Access
Zoom in: Amazon said Wednesday it is also expanding "affordable grocery delivery access" to more Prime Access members, "regardless of their qualifying form of government assistance."
- The benefit is $4.99 per month, half of the regular monthly fee.
- Amazon said this saves Access members $60 a year compared to the monthly option for Prime members.
Flashback: Amazon rolled out this benefit for Access members with a registered EBT card earlier this year.
Amazon Prime membership cost 2024
By the numbers: Amazon Prime costs $139 a year for annual membership or $14.99 a month on the monthly plan.
- The new grocery plan is an additional $99.99 a year or can be purchased monthly for $9.99, which adds up to a $120 a year.
- Amazon has other monthly optional fees including $2.99 for consumers choosing the ad-free Amazon Prime Video option that launched in late January.
The big picture: The same-day delivery wars have been heating up with Walmart and Target adding speedy new services that rival Amazon.
- Target Circle 360, which launched April 7, cost $99 a year but is $49 for Target Circle Card holders, previously RedCard holders.
- Walmart+ costs $98 a year or $12.95 a month. The retailer launched an early morning on-demand delivery service in March which comes with a $10 express fee for members.
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