Amazon has the lowest free delivery minimum among grocery stores
Amazon’s announcement today that Prime members across the country can get free same-day grocery delivery sent grocery stocks down, including Walmart, Albertsons, and Kroger.
The online retail giant’s latest push into the grocery business might do more than gobble up revenue from competitors; it could eat into other grocery chains’ margins by forcing them to lower their free delivery thresholds for subscribers, according to a note from Barclays Equity Research, which adds that Amazon’s $25 free grocery minimum is set lower than all its competitors.
“Overall, it is mostly about convenience, less about price, although there are some considerations on that too (with [Amazon having] a lower free delivery threshold and potentially some lower prices vs other services),” the analysts wrote.
Members of Instacart+, however, get free delivery on orders over $10, though they’re also on the hook for a $99 yearly service fee.
