How Amazon Plans To Make Groceries Cheaper For Its Employees

Amazon announced Wednesday that it is giving U.S. employees a way to save on groceries and everyday essentials as part of a broader package of pay and benefit increases.

Beginning October 1, every Amazon employee in the United States will have access to an uncapped grocery discount, including employees working in fulfillment centers, Whole Foods Market stores, corporate offices, and other parts of the company, the corporate announcement says. 

The new benefit will give employees “10% off eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market Online.” Employees shopping in person at Whole Foods Market will receive 20% off eligible purchases, including on prepared foods and at the salad bar.

The discount takes effect on an employee’s first day on the job and has no minimum purchase requirement or annual savings cap. It can also be combined with existing Prime discounts, coupons, Lightning Deals, and other eligible promotions.

The discount isn’t limited to food. It also applies to everyday essentials such as diapers, baby formula, cleaning supplies, pet food, and toiletries.

Amazon said the new benefit is designed to help employees with one of their most frequent household expenses.

“Groceries are one of the most frequent purchases people make,” Jason Buechel, Amazon’s vice president of Worldwide Grocery Stores and CEO of Whole Foods Market, said in a company announcement. “It’s the bill that comes due every week, and it adds up.”

The grocery discount is part of a larger investment in Amazon’s U.S. workforce. The company said it is spending more than $1.5 billion to increase pay for full-time core operations employees, raising the minimum starting wage by $1 up to $20 per hour. Average hourly pay for those employees will reach nearly $24, while average total compensation, including benefits, will exceed $32 per hour.

Amazon is also introducing a banking benefit that gives employees access to banking services without overdraft or maintenance fees, plus doesn’t require a credit history to open an account. This service will become available early next year. 

Existing employee benefits at Amazon include free Prime membership for eligible workers, health care options, a 401(k) with company match, paid parental leave, and Amazon’s Career Choice education program.

This news comes on the heels of the company’s announcement that it will dramatically expand its Prime Air drone service to nearly 500 U.S. cities and towns by the end of the year.

The expansion would bring Amazon’s “ultrafast drone delivery” to communities with tens of millions of customers nationwide, the announcement said in August.

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