The online retailer is also improving delivery speed by offering members one- and two-hour delivery windows in most cities.
"Given the rapid growth of grocery delivery we expect this will be a popular benefit", Amazon says, "so today Prime members now shopping grocery delivery can continue enjoying these services". Now, those Prime members can use it without the extra charge, and others new to grocery delivery can request an invitation to use the service.
The e-grocery delivery service, which transports produce, meat, snacks, and basically everything you can find at a grocery store, is now available in more than 2,000 cities and Amazon reveals it's planning to expand the service to more towns soon. Members have the option of paying the $98 annual fee or $12.95 per month instead of the usual $9.99 delivery fee.
Amazon launched Amazon Prime in 2005 and later expanded te service Germany, Japan and the United Kingdom.
"I've been working in grocery delivery a long time, and I think this offering is truly a game-changer", said Stephenie Landry, Amazon's vice president of grocery delivery, in an interview with GeekWire.
Amazon is axing grocery delivery fees for US Prime customers in a move which will tighten its grip on online shopping and allow it to steal more market share from supermarkets.
"Amazon is expected to own the largest market share of U.S. food and beverage ecommerce sales in 2019 at 32.7%", eMarketer said. Amazon announced Tuesday that customers will be able to buy Whole Foods groceries through Amazon.com and the Amazon app, in addition to the Prime Now app.
Walmart says it will offer grocery pickup from 3,100 stores and grocery delivery from 1,600 stores by the end of the year.
Amazon's price reduction could put pressure on its largest rival: Walmart. Whole Foods had partnered with grocery delivery service Instacart prior to the Amazon acquisition. Increased spending on shipping is one reason Amazon fell short of Wall Street's profit expectations in its third-quarter earnings report last week.
The AmazonFresh grocery delivery program began in Seattle in 2007 and was slow to expand. Landry, however, said the business is growing and has expanded this year to areas like Nashville, Orlando and Las Vegas.