Amazon is rolling out a new grocery subscription service for Prime members in three cities, aimed at making shopping more convenient and affordable. The subscription, priced at $9.99 per month, provides Prime members with unlimited free grocery delivery from Whole Foods Market and Amazon Fresh on orders over $35. It also offers unlimited 30-minute pickup for orders of any size.

The company's Senior Vice President of Worldwide Grocery Stores, Tony Hoggett, expressed excitement about the new offering, saying, "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."

Currently, Prime members are charged a delivery fee of $6.95 for Fresh orders ranging from $50 to $100, and $9.95 for orders below $50. However, this was not always the case. Amazon introduced delivery fees for Fresh grocery orders under $150 earlier this year in January, removing the perk of free delivery on orders over $35 for Prime members. In October, the company revised its decision and lowered the threshold for free grocery deliveries to $100.

In September 2021, Amazon implemented a $9.95 fee for delivery orders from Whole Foods, which previously did not carry an extra charge.

With the introduction of this new subscription offering, Prime members will no longer be required to pay any of these fees for delivery orders over $35. Amazon hopes that the membership will incentivize customers to place more orders without being deterred by the associated delivery fees.

This announcement comes just a month after Amazon revealed that a Prime membership is no longer necessary for customers across the United States to order groceries from Amazon Fresh. The company also announced its plans to extend a similar option to Whole Foods shoppers. By removing the Prime membership requirement, Amazon aims to compete more effectively against rivals such as Instacart, Walmart, and DoorDash.

Amazon has been expanding its presence in the grocery industry since acquiring Whole Foods in 2017. However, its grocery business has faced challenges, likely due to strong competition. The Information reported last year that Fresh stores were experiencing low foot traffic, resulting in slower store openings.

Overall, the introduction of the new grocery subscription offering aims to enhance the shopping experience for Prime members while boosting Amazon's competitiveness in the fiercely contested grocery market.

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