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Sunday, 18 October 2015

Amazon’s grocery service now requires a $299 yearly membership

article imageAmazon warned late last year that it would eventually require a $299 yearly membership just to use its AmazonFresh grocery delivery service. So far, tests that would open the door to standard Prime members (who’d always pay delivery fees) haven’t led to anything concrete. However, it’s doubtful that Amazon will have a change of heart in the near future.
  • The pricing doesn’t stack up well next to rivals like Instacart, which both costs less up front ($99 per year) and waives the delivery fees at a lower threshold ($35).
  • The company is one of the old hands in the online grocery delivery business, and it had a long time to do the math — it’s likely convinced that an all-encompassing $299 plan is more sustainable than a groceries-only option.

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