Amazon is merging its Prime Now delivery service with AmazonFresh, its grocery delivery service. According to industry insiders this move is more of a marriage with both brands working together versus a complete merger where one brand takes over.
“The grocery industry is still trying to define its future in the digital age, and it’s a lot of trial and error. Amazon’s move to consolidate AmazonFresh with their PrimeNow delivery service is an example of how they’re experimenting within this space to see what works through various product iterations.” commented Diego Tartara, CTO Latin America at Globant.
Both brands are entirely different and it will be interesting to see what Amazon’s blended service offers. Here’s how the two services compare:
- Prime Now currently delivers most of Whole Foods assortment from select locations, and offers free two-hour shipping on orders over $35. The orders are delivered by Amazon Flex delivery drivers that use their own cars.
- AmazonFresh, offers a wider assortment of groceries, at $15 a month plus the monthly Prime subscription of $12.99. Orders are delivered by truck and consumers can select a timeframe for grocery delivery.
The result of the consolidation of PrimeNow and Amazon Fresh will perhaps signal how the e-commerce giant will further disrupt the grocery Industry. What does Amazon’s merger mean for competitors, and how can they prepare to defend market share?
“Amazon is taking more control over the customer journey and further enabling end-to-end experiences. AmazonFresh with Prime Now is furthering this mission. We’re excited to see how this consolidation will blend with Prime Now’s delivery of Whole Foods groceries, and how they work in Alexa’s conversational capabilities to become omnirelevant in an industry that is so deeply rooted in the physical space.” – Diego Tartara, CTO Latin America at Globant
Will brick-and mortar grocery eventually crumble in favor of a click-and-mortar business model? And how will virtual assistants like Alexa, impact Amazon?
Nearly 75% of the virtual assistant device market is dominated by the Amazon Echo and partnering devices, with approximately 15 million units sold as of third quarter of 2017. The home hub will now join the ease of voice recognition with e-commerce demands as Amazon merges its Prime Now delivery service with AmazonFresh.
The grocery landscape is primed for further disruption and Amazon’s merger of Prime Now and AmazonFresh will provide an omnichannel outlet that will supply a vastly greater number of consumers with endless ease from the comfort of their home.