Amazon-owned Whole Foods is eliminating a perk for Prime members in order to avoid raising prices on products. Starting on October 25, all Whole Foods grocery delivery orders will come with a $9.95 service fee. Previously, Prime members got free delivery of grocery orders over $35. According to Whole Foods, free grocery deliveries have proved unsustainable as operating costs mount and order sizes increase.
The fact that even capital-flush Amazon is upping its fees for grocery delivery underscores the cost burden that food retailers face as they continue to adjust to pandemic-fueled demand.