Amazon is putting new online grocery customers on a waitlist amid rising demand for its grocery pickup and delivery services due to the COVID-19 pandemic. The retailer on Monday announced it will ask new Amazon Fresh and Whole Foods Market delivery and pickup customers to sign up for a waitlist if they’re interested in either service, with some number of waitlisted customers invited to shop every week as Amazon increases its capacity for these online orders.
The company also said it will adjust store hours for some of its Whole Foods locations in order to focus its staff’s attention online on fulfilling online grocery orders during this time. One of its Amazon grocery stores, located in Woodland Hills, California, is also now being used temporarily as an online-only store, meaning it will be closed to foot traffic.
Amazon has been working to address increasing consumer demand for online grocery in several ways since the health crisis began. It expanded online grocery pickup from 80 stores to over 150 in the last several weeks, and is continuing to grow that service’s footprint. It has also been releasing delivery windows throughout the day to make it easier for customers to see their options from both the Amazon Fresh and Whole Foods Market homepages. And it’s been working with the U.S. Department of Agriculture to expand online access to SNAP (commonly known as food stamps) in states including Alabama, Iowa, Nebraska, New York, Oregon, and Washington, with plans for further expansions.
This rise in demand for online grocery is not unique to Amazon, however.
As now millions of Americans are being asked to stay home amid the COVID-19 outbreak, they’ve turned to online grocery providers as a safer alternative to shopping in stores. Last week, for example, grocery delivery service Instacart rolled out several new features aimed at opening up more delivery windows as demand reached record levels. Meanwhile, Walmart’s Grocery app saw its highest-ever number of downloads to date, boosting its app’s ranking even higher than Amazon’s for a time.
This record growth has strained these businesses, which have even seen some workers walking off the job in protest at both Instacart and Shipt. But their ability to get their demands heard has been more difficult as there are now many unemployed ready to sign up to work.
Amazon in March announced it planned to hire at least 100,000 more people to help it meet its growing customer demand, including for grocery delivery, and would invest over $350 million to support employees and partners during the COVID-19 crisis. The new hires will help Amazon to more quickly receive inventory, restock and deliver products to customers, it said, while also increasing the delivery window availability.
Today, Amazon announced its original 100,000 jobs pledge has been filled with those new employees now working at sites across the U.S. The retailer today says it’s creating an additional 75,000 jobs as demand continues to grow. The company noted, too, that anyone is welcome to apply — including those who lost their jobs in industries like hospitality, restaurants, and travel — not just those who have retail or warehouse experience.
In addition, Amazon said its original estimate of $350 million it planned to spend to increase wages will likely now be over $500 million.
While increased consumer demand for online grocery is something being seen across the industry today, Amazon noted that rising demand was not the only factor in its decision to move new customers to a waitlist. It also said that the safety protocols required to make stores and warehouse safer had created limits in its ability to increase the capacity of its delivery services in recent weeks, as well.
Correction, 4/13/20, 3:00 PM ET: The online-only store in Woodland Hills is not a Whole Foods; it’s an Amazon store.
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