PHILADELPHIA -- Competition among grocery delivery services is heating up and the real winners are consumers. Amazon announced today that it is eliminating its delivery fee for Prime members.
Groceries are an estimated $675 billion dollar market in the U.S. and it is increasingly going digital. The number of U.S. internet users who buy groceries online and have them delivered right to their door has gone from 38 percent to 56 percent in one year and that figure is expected to grow rapidly.
"Maybe that's something I need to look into. It's better than coming out here in the rain, very convenient, very convenient," said Wesley Irvin from West Philadelphia.
Amazon has two grocery delivery services. Delivery from Whole Foods Markets was already free for Prime customers, Amazon Fresh cost an additional $15 a month. But the company announced it is now eliminating that fee.
"If you're a current Amazon Fresh member or maybe you've already shopped grocery delivery from Whole Foods Market through Amazon, you can start shopping Amazon Fresh today for free, no additional membership fee," explained Carley Golden of Amazon.
If you're new to grocery shopping on Amazon, you can request an invite and Amazon will notify you when you're able to shop.
"Whole Foods groceries are coming directly from the stores whereas Fresh products are coming from our local fulfillment centers," said Golden.
The announcement comes after Walmart rolled out unlimited grocery delivery service for an annual fee of $98 two months ago.
Amazon offers two-hour delivery windows but you'll still have separate carts for Amazon Fresh and Amazon Whole Foods Market and to qualify for free delivery, each order has to be at least $35.