In its ongoing efforts to solidify its position as a leading grocery destination, Amazon is piloting a new grocery subscription for members of its Prime program. The online retail giant will offer Prime members the option to pay $9.99 per month for unlimited grocery delivery from Whole Foods and Amazon Fresh on orders over $35. Additionally, members will have access to 30-minute pickup for orders of any size.

The trial service will initially roll out in three cities: Denver, Colorado; Sacramento, California; and Columbus, Ohio. Tony Hoggett, who leads Amazon's physical stores business, expressed excitement about the launch, stating, "We're always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond."

With the new grocery subscription, Amazon aims to tap into the growing demand for hassle-free and cost-effective grocery delivery. Prime members, who already enjoy perks such as free and fast shipping, as well as access to video streaming, may now have the incentive to place larger and more frequent food orders.

To manage mounting costs, Amazon has made adjustments to its fee-free grocery delivery threshold in recent years. In October, the threshold for free Fresh grocery delivery was lowered to orders over $100, following a previous minimum order requirement of $150. Additionally, in 2021, the company introduced a $10 service fee for Whole Foods delivery orders to Prime members.

Amazon's acquisition of Whole Foods Market in 2017 for $13.7 billion has been instrumental in its quest to become a prominent player in the grocery industry. Since then, the company has launched its own chain of Fresh supermarkets and has been working to integrate its online and brick-and-mortar grocery operations while appealing to a broader customer base.

In a move to increase accessibility, Amazon recently opened Fresh grocery delivery to people without Prime across the United States, following successful testing in select cities. This expansion further highlights the company's determination to cater to the evolving needs and preferences of consumers in the grocery sector.

As the pilot program commences in the selected cities, Amazon will closely monitor the response from Prime members. By providing a convenient and cost-effective grocery delivery option, the company aims to solidify its position as a one-stop shop for all consumer needs.