Amazon-owned Whole Foods adding surcharge to delivery orders
Surcharge will hit Prime members on Oct. 25
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Amazon Prime members are getting hit with a surcharge on Whole Foods Market delivery orders starting next month.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 198.38 | -4.50 | -2.22% |
Beginning Oct. 25, Amazon-owned Whole Foods Market is implementing a $9.95 service fee for deliveries, a Whole Foods Market spokesperson told FOX Business. However, any pickup orders over $35 will still be free for Prime members, the spokesperson said.
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The grocer said that it's not increasing the prices of its products and is only adding the fee to delivery orders in order to "cover operating costs, including equipment, technology and other costs" associated with the service.
"Growth of delivery drives operating costs that we do not want to shift to product prices," the spokesperson said, noting that the company has had "consistent pricing on everyday priced products in store and online."
A Twitter user tweeted the notice they reportedly received from Amazon about the "upcoming change to Prime grocery delivery benefits at Whole Foods Market" in their area.
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Whole Foods Market delivered over three times as many orders in 2020 compared to pre-pandemic times after ramping up its delivery business and expanding its service area, according to the company.
As the pandemic persists, "customers continue to rely on delivery for their stocking up needs, as average basket sizes have continued to increase since the beginning of 2021," the spokesperson said.
The company implemented the fee on Aug. 30 for Chicago, Boston and other areas in New England.
