Ever since Amazon acquired Whole Foods last June, industry observers have been anxiously waiting for the e-tailer to link its technical and logistical capabilities with Whole Foods' brick-and-mortar operations to create a true online grocery delivery service.
The service was available as of Thursday in Austin and Dallas, Texas; Cincinnati, Ohio; and Virginia Beach, Virginia.
But, Amazon's shop does have some Whole Foods Everyday Value 365 items available for purchase, which was implemented prior to the integration with Whole Foods stores.
Prime Now will also deliver from other grocery stores and restaurants in the markets where it operates.
It's unclear if Greeley's title will change or whether his appointment will affect Whole Foods CEO John Mackey's role.
While the company says that Whole Foods groceries will become available in more markets through Prime Now this year, it offers no specific timeline at this point. You can't ever argue with a free delivery option, though.More news: Backed forces in Syria strike pro-regime militants, killing at least 100
But Wednesday's announcement is the biggest step toward what many analysts expected Amazon to do with its new grocer: use Whole Foods and its inventory of groceries as an extension of its warehousing network. The integration also incentivizes Prime further, as Amazon pushes heavily for users to take up the annual subscription service which includes discounts on the online store as well as music and video streaming services.
"Ever since Amazon introduced Amazon Fresh, it has had its sights firmly set on the grocery market".
And one in four of us now buy groceries online, versus less than one in five (19%) in 2014 - proof that this trend has been catching on for sometime. So delivering Whole Foods makes sense since the majority of the infrastructure is already in place. Whole Foods still has its own delivery system that services local areas around its store locations, but Amazon could fold that service into its own in the future.
Landry said,"They will pick the items, put them in appropriate packaging to maintain the chill chain and pack them".
The orders will then be given off to Amazon Flex delivery operators.