Amazon to test Prime Now delivery service in Canada
Online giant will leverage its Whole Foods to test delivery service
Canadian Grocer staff with files from The Associated Press
Amazon will pilot its one- and two-hour membership delivery service Prime Now in Canada later this year, according to The Wall Street Journal.
A source "familiar with the matter" told the newspaper the pilot program would run in Toronto and Vancouver to start and, based on its success, expand to other Canadian cities throughout 2018. Through the service, the company will offer grocery items such as produce, dairy and frozen food.
Prime Now is available to Amazon Prime members in Canada. Membership to the service costs $79 a year.
The move marks a broader push into the Canadian market for Amazon and leverages its recent acquisition of Whole Foods, which has 13 stores in Canada—six in British Columbia and seven in Ontario.
“Whole Foods is already marked up quite high,” said Mark Lee, associate professor at the Ted Rogers School of Retail Management. “The price reduction is really just getting back to the level of regular grocery prices.”