Updated: Dec 21, 2020
E-commerce retailer Amazon (listed: NYSE) one step further in the competitive market for food deliveries and is canceling the fees for the delivery service Fresh, as the German grocery media platform "Lebensmittelzeitung" first reported. Previously, customers had to take out a monthly subscription for the service in the amount of 7.99 euros (US$9.8). Starting Wednesday, all Prime customers with a minimum order value of 80 euros (US$98)or more can order everyday products such as fruit and vegetables from Amazon free of charge. If the shopping cart value is lower, the customer pays shipping costs of 3.99 euros (US$4.90) per order. So far the service is available in Berlin, Potsdam, Hamburg and Munich.
However, customers still have to have a Prime membership to use Fresh. With the adjustment of the fees, Amazon wants to give the Prime members even more flexibility for weekly shopping on the net, the company said to the “Lebensmittelzeitung”.
E-food market as winner of the corona crisis
Amazon is thus further positioning itself in one of the largest growth markets of the Corona year 2020. In times of contact restrictions, social distancing and now especially in lockdown, food deliveries are now becoming increasingly popular. As the management consultants from EY Parthenon told the “Wirtschaftswoche”, the market segment was “the absolute online shooting star of the crisis”. Experts expect the current sales volume to double from 1.8 to 4.3 billion euros (US$2.2-5.3Bn) by 2024.
The e-food market is booming, Corona has given wings to the market that has been growing slowly in the years before. In this country, Amazon and the grocery e-commerce market leader REWE Lieferservice were the first large providers, but more and more foreign providers are pouring into the market. For example, the Dutch competitor Picnic or the Czech grocer Rohlik, who want to start their German branch Knuspr.de in Munich in early 2021.
See here for more: https://www.businessinsider.de/wirtschaft/handel/lebensmittel-kostenlos-liefern-lassen-amazon-fresh-streicht-abo-gebuehr/?mkt_tok=eyJpIjoiTXprNFl6VXpNMlV6WkdaaCIsInQiOiIxM29ZYktuTHEwdFJuQzAzU0diT21JZWZyU21NamQ0MnJxeHRHUmFYcmxGcE9LemswQmFGS1NUOUZwWmZhK2NsOHp1Z2V6c3JpdXcrOGY2SHR4NFBERG9IKzhcL1RcL052czVURnVSY3BDZ2gydE9cLzNBYXRaWlFvcW5UeTlWWWdKTiJ9