Free Whole Foods delivery beings for Virginia Beach Amazon Prime members

Amazon to deliver Whole Foods groceries to Prime members

The perk is now available in four cities (Austin, Cincinnati, Dallas and Virginia Beach), though the service is set to expand to the rest of the country later this year.

Whole Foods and Amazon are testing a service that provides two-hour delivery directly from Whole Foods stores. Other cities include Austin, Cincinnati, and Dallas.

Those cities will be the initial battlegrounds, and there are plans to roll out the service nationwide. "We're going to be expanding".

Launched in 2005, Prime is Amazon's paid-membership program that gives access to a number of benefits, including free two-day shipping, unlimited video streaming and online storage space.

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Whole Foods delivery will be integrated with the Prime Now service, which is available for Amazon Prime members.

Here's the idea: Instead of stocking Whole Foods groceries in a warehouse and starting Prime Now deliveries from there, the new program uses a Whole Foods store as a depot.

"There is a lot of runway, and we expect continued Prime penetration with Whole Foods customers", John Blackledge said in a research note.

Thomson Reuters Tomatoes are pictured at a Whole Foods store in San Diego. It'll include "the vast majority of things that people buy most frequently", Landry told The Seattle Times.

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Industry experts expected a move like this.

The man who ran 's Prime membership program will now be spending more of his time at Whole Foods. Prime Now also offers delivery from local spots via Amazon Restaurants.

A 2017 Morgan Stanley survey of Prime members showed Prime Now grocery orders increasing.

Greeley is the first high-profile Amazon executive known to be spending time at Whole Foods, the grocery chain Amazon bought for $13.7 billion previous year. "Together, we have already lowered prices on many items, and this offering makes Prime customers' lives even easier".

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There are about 60 million households in the USA that use Amazon's Prime service, and only about 22 percent of those shopped at Whole Foods in December, according to research from Cowen & Co.

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