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AmazonFresh now available in Minneapolis, local finance expert weighs in on it

Updated: August 22, 2019 06:44 PM

There's a new grocery delivery service coming to Minneapolis. Starting Thursday, August 22, Amazon Prime members can get products shipped directly to their doorstep, and it will only take an hour or two. It's called AmazonFresh. 

If you're an Amazon Prime member, it's an extra $15 per month on top of your Prime subscription. Keep in mind, you have to buy $35 worth of products to get free delivery, otherwise there's a $10 charge.

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"This could have the potential of being a game changer," said David Vang, a University of St. Thomas Department of Finance professor.

Vang said AmazonFresh is part of a trend.

"Amazon Prime is trying to cut into that, to kind of try to get another piece of the business as well." Vang said he is referring to the business of online and brick and mortar stores getting you to buy groceries when you were originally shopping for something else.

"Walmart, you can do self-delivery of grocery products, and so if they're doing it, I think Amazon probably thinks they probably have to try to catch up to them," Vang explained.

5 EYEWITNESS NEWS spoke with Walmart customers who said they like going into the store to inspect their products personally, and feel the produce as well as physically see the meat and fish before they buy it.

5 EYEWITNESS NEWS also spoke with Shipt users. Shipt is owned by Target and ships groceries. Those customers said they use it to purchase heavy items, such as cat food and canned food, but not for perishable items.

Still, finance experts say that could become a practice of the past, because of the fast delivery AmazonFresh is offering.

"This puts online retailers of any sort, groceries or physical products, at an advantage over brick and mortar ... This would maybe be a bargain for someone who's already an Amazon Prime customer," Vang said.

Vang added the expansion of AmazonFresh will also mean more jobs available for drivers needed to deliver all of those groceries.

If you want to give AmazonFresh a try, there is a free 30-day trial, but it's only for a limited time.

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Brandi Powell

Copyright 2019 - KSTP-TV, LLC A Hubbard Broadcasting Company

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