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Whole Foods Adds Service Fee for Amazon Prime Deliveries

Amazon's Whole Foods Market ends free deliveries for Amazon Prime members, as it will add a $9.95 service fee beginning in October.

Amazon's  (AMZN) - Get Amazon.com, Inc. Report Whole Foods Market is ending free deliveries for Amazon Prime members, as it will add a service fee beginning in October.

Amazon on Friday notified its Amazon Prime members that starting Oct. 25 it will charge a $9.95 service fee for Whole Foods delivery orders. Customers will also pay additional rush order fees for one-hour deliveries. Grocery pickup will still be free for Prime members on orders over $35.   

The service fee is already in effect for deliveries in certain areas, including Portland, Maine; Providence, R.I.; Manchester, N.H.; and the greater Detroit, Boston and Chicago areas, according to Amazon's website.

Amazon asserted that the service fee helps cover operating costs, including equipment, technology and other costs associated with grocery delivery orders.

Amazon Fresh two-hour delivery and one-hour pickup remain free for Prime members on orders over $35. Rush orders will continue to include additional fees.

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Amazon in August 2017 acquired the Whole Foods grocery business for about $13.7 billion.

Austin, Texas-based Whole Foods, which was founded in 1980, is a leading natural and organic food store with over 500 locations in the U.S., Canada and U.K.

Amazon this week unveiled a COVID-19 vaccination incentive program that gives frontline workers a chance to win up to $500,000 cash and other prizes for getting the vaccine. Under the lottery system called Max Your Vax, the company offers 18 prizes, including two $500,000 cash awards, six $100,000 awards, five new vehicles, and five vacation packages.

Shares of Amazon rose slightly to $3,426.90 in after hours trade. 

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