April 23 (Reuters) - Ecommerce giant Amazon.com ( AMZN )
launched a new grocery delivery subscription on Tuesday in the
United States for members of its Prime program and customers who
are recipients of the government food assistance benefits.
The subscription plan would allow Amazon's ( AMZN ) Prime members to
get unlimited grocery delivery at $9.99 per month on orders over
$35 from Whole Foods Market, Amazon Fresh, and other local
grocery and specialty retailers on the platform, including Save
Mart, Bartell Drugs, Rite Aid and Pet Food Express.
The service will be available in over 3,500 cities and towns
across the country.
Low-income citizens, who rely on the government's
Supplemental Nutrition Assistance Program (SNAP) to support
their grocery budgets, would have to pay a reduced $4.99 fee per
month for the same perks and do not require a Prime membership,
according to the statement by Amazon.com ( AMZN ).
The move comes as part of the company's efforts to expand
its fresh-food business in a space already occupied by players
like Walmart ( WMT ) and Target ( TGT ), which also have paid
membership programs.
A Walmart Plus offers plans for $12.95 per month, or a
yearly plan for $98.
Amazon's ( AMZN ) offering also includes one-hour delivery windows at
no extra cost and unlimited 30-minute pickup on orders of any
size.
The move comes after a successful trial of this subscription
plan in Denver, Colorado, Sacramento, California, Columbus and
Ohio last year, the company added.