Amazon announced last week that it would begin two-hour delivery of Whole Foods products for Prime members in select markets. The announcement came just before the Wall Street Journal reported that Amazon is preparing to introduce an in-house delivery service, which would compete with FedEx and UPS.
The Whole Foods deliveries will debut in Austin, Cincinnati, Dallas, and Virginia Beach, and the company reports that it plans to expand the service throughout 2018. Amazon’s in-house package delivery is expected to roll out in Los Angeles, with possible expansion into other markets this year.
Since Amazon’s $13.7 billion surprise acquisition of Whole Foods last June, speculation has varied about the tech giant’s intentions in the grocery space. Many have tried, but few have succeeded at capturing the online grocery market. Only about 5 percent of groceries are bought online.
Meanwhile, Whole Foods’ customers, suppliers, and employees have complained that quality has declined since its acquisition. Customers have noticed emptier shelves. Suppliers have noted that the chain is requiring higher stocking fees and deeper discounts. Employees have reported that a new inventory system is degrading morale.