Amazon.com, Inc. (NASDAQ:AMZN) has added San Diego to the list of locations where its food delivery service is offered.
The company launched the one-hour food delivery service in San Diego where it will deliver food from more than 90 restaurants to customers on demand. San Diego marks the 7th market for Amazon’s food delivery service that has been picking up at a rapid pace. The service is already available in Portland, Seattle, Baltimore, Ore, Austin and Los Angeles.
The food delivery service is also part of Amazon’s Prime Now. This means customers subscribed to the service and within the 16 zip codes where the food delivery service is operational can take full advantage of it. Amazon claims that it takes on average 39 minutes to deliver food from a restaurant to the customer. To add to that, customers can track their food from the time they order it until it is delivered to their location. The company expects the same level of punctuality in San Diego.
Since the service is part of Prime, subscribers do not pay delivery fees. The online retailer usually charges restaurants, but now it is offering the service for free as long as the restaurant meets the daily target of $20 minimum order amount. This strategy places Amazon well above its rivals such as DoorDash and Postmates, who charge on average $4 per delivery fee. Amazon’s offer is more of a bargain keeping in mind that prime is conveniently priced at $99 for a one-year subscription. Additionally, it offers a few other services and the 2-day shipping for products purchased on the company’s online market.
Amazon Prime was also the ideal platform for the food delivery service because it already has a good customer base. The company estimates that 38% of Americans are subscribed to Prime. The good numbers are attracted by the variety of services available on the platform including content streaming services where subscribers can access movies, TV shows and music. It makes it much easier for the firm because users have already logged in their information.