Prime members previously had free Fresh deliveries on orders over $35, but Amazon started charging delivery fees for orders under $150 in January, removing the perk. In October, Amazon lowered the threshold for free grocery deliveries to $100. In September, Amazon implemented a $10 fee for Whole Foods delivery orders. The new subscription offering eliminates these fees for Prime members with delivery orders over $35, likely to increase order frequency. Amazon recently announced that Prime membership is no longer required for Amazon Fresh and soon for Whole Foods, making it more competitive against Instacart, Walmart, and DoorDash. Despite Amazon’s expansion into the grocery space, its grocery business has declined partly due to competition. The Information reported last year that Fresh stores were running empty and store openings had slowed.
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