TL;DR:
- Amazon is launching a pilot program for a $9.99 monthly grocery subscription service for Prime members.
- This service is currently only available in three cities.
Article Information
Tech industry giant Amazon has commenced a pilot program that provides a monthly grocery subscription service for their Prime members. The service, costing $9.99 per month, is currently limited to only three cities. While the specifics of the service, including the cities involved, have not been divulged, this approach represents Amazon’s foray into subscription-based grocery services.
Given Amazon’s strong e-commerce background, it makes sense that it would try to leverage that strength by venturing into other sectors. The company has been slowly expanding into various markets, with groceries being its latest venture. If the subscriptions prove popular, we expect further expansion, potentially rendering Amazon a significant player in the grocery subscription market.
Personal Opinions
At Watkins Labs, we admire the innovativeness of Amazon and its willingness to disrupt established markets. By leveraging its economies of scale and technological prowess, Amazon has demonstrated unmatched prowess in delivering varied services to its users.
However, while expanding Amazon’s offerings, the company must ensure its grocery subscription service delivers value. In the current scenario, where grocery delivery services are plenty, does this product offer anything exclusive or is it simply a redundancy of existing services?
Moreover, will the Prime members appreciate the additional cost, despite the convenience, or will they view it as an unwanted extra charge? These are some of the questions we will be keen to see addressed as the pilot unfolds.
References
Source: TechCrunch
What is your take on this? What do you think about Amazon’s expansion into the grocery sector? And, do you think the price is reasonable for the service offered? Feel free to let us know in the comments below.
