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- Amazon plans to add a $9.95 fee to Whole Foods grocery deliveries through Prime in some markets.
- Prime members across six US markets have been informed of the new fee.
- The company said the service charge will help offset operating costs.
- See more stories on Insider’s business page.
Amazon is adding on a $9.95 delivery fee to Prime orders of Whole Foods’ items across six US markets.
A Whole Foods spokesperson told Insider the fee will be rolled out in the greater Detroit, Boston, and Chicago areas, as well as in Portland, Maine, Manchester, New Hampshire, and Providence, Rhode Island.
In a notice sent to shoppers last week, the grocery chain said the additional charge would help cover operating costs for delivery orders, but would not apply to grocery pickups, Bloomberg first reported.
The spokesperson told Insider the fee is part of a pilot program. It will help cover delivery logistics and allow the chain to avoid raising prices on its products.
Whole Foods launched its grocery delivery service in 2018, shortly after e-commerce giant Amazon bought the chain for $13.7 billion in 2017. The grocer offered free deliveries for Prime members who had bought over $35 in groceries.
The Whole Foods service quickly went head-to-head with other top Amazon delivery options, including Prime Pantry and Amazon Fresh. In January, Amazon shut down its Prime Pantry service in order to streamline its grocery offerings.
Since the onset of the pandemic, grocery services like Amazon Fresh and Whole Foods delivery have become increasingly popular as more customers look to social distance. But, as the cost of goods continues to rise with increased shipping costs, as well as product and labor shortages, the new fee indicates Amazon may not be immune to inflation.
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