Amazon launches new grocery delivery service for Prime members and SNAP users

SNAP recipients who contract with Amazon for their groceries will have a lower-cost option

Last Tuesday, Amazon introduced a new grocery delivery service available to Prime members across the United States, along with a reduced-price alternative for those receiving Supplemental Nutrition Assistance Program (SNAP) benefits, also known as the food stamp program

Unlimited grocery delivery service from Whole Foods Market, Amazon Fresh and other local supermarkets and specialty retailers now costs $9.99 per month for orders over $35. This option is available in more than 3,500 cities and towns across the country and offers features such as one-hour delivery, Amazon announced.

Amazon announced that the cost for SNAP recipients is $4.99 per month. To participate in the food delivery program, SNAP recipients need to have a registered Electronic Benefits Transfer (EBT) card, but do not require a Prime membership, which costs $139 a year or $14.99 a month.

The new service is being introduced nearly three years after Amazon discontinued free delivery for Whole Foods customers, which generated some concern among consumers at the time, the Washington Post reported. Meanwhile, rival Walmart offers unlimited grocery delivery as part of its Walmart Plus membership program, which costs $12.95 a month, along with a discounted service for food stamp recipients.

Other companies, such as Instacart, have rates that can start at $3.99 per delivery. Amazon said its new grocery delivery service «pays for itself with as little as one delivery order a month from Whole Foods Market, or one delivery order a month from Amazon Fresh for less than $50.»

«We have many different customers with many different needs, and we want to save them time and money every time they shop for groceries,» explained Tony Hoggett, Amazon’s senior vice president of global grocery stores. 

Amazon announced that it is rolling out the program nationwide after testing it in three cities last year. According to the company, more than 85% of test participants considered it a success, noting the convenience and savings on shipping costs.

The addition of food stamp customers to the program is part of Amazon’s initiative to provide affordable grocery services to low-income customers, the company explained.

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