Beginning Tuesday, Amazon is moving out free, two-hour delivery from its Whole Foods stores to Prime members in Atlanta and San Francisco for all orders over $35. Amazon Prime Members can order their groceries using Prime Now, either online or through the app, and expect a delivery in one to two hours (on orders made between 8 a.m. and 10 p.m.). "Together, we have already lowered prices on many items, and this offering makes Prime customers' lives even easier".
Yahoo Finance previously reported that there has been some friction between the Amazon and Whole Foods as the two companies work to integrate. It's unclear exactly when San Francisco delivery will be available or if other cities will also debut at the same time.
According to a press release, these won't be the last new markets Amazon and Whole Foods roll out this year. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.
The deal is potentially damaging for grocery delivery startup Instacart, which is worth over $3 billion itself and has partnered with Whole Foods for years.