Amazon expands in Phoenix with plans for drone delivery

With the recent opening of a Whole Foods Market, plans for drone delivery, and a pilot program by parent company Amazon that enables shoppers to make online purchases from Amazon Fresh, Whole Foods, and Amazon.com, Phoenix is turning into a test ground for the Seattle-based retail giant.

The new 50,358-square-foot Whole Foods opened in Paradise Valley Mall on Oct. 16, but that’s just a fraction of the presence Amazon is building in the desert city. 

In April, Amazon announced plans to launch a drone delivery program in the West Valley of metro Phoenix, but the retailer has yet to release additional information.

Amazon spokesperson Jessica Martin said in an email to Supermarket News that the drone program is still in the works and set to launch sometime before the end of 2024. 

Meanwhile, Amazon announced on Oct. 10 that Phoenix will soon be home to an ambitious pilot project that combines three of its grocery entities.

“The trial in Phoenix allows customers to shop tens of thousands of grocery items alongside millions of Amazon.com products and have them delivered together in hours,” Martin said. “This is alongside the options to shop a full basket at Amazon Fresh or Whole Foods Market online.”

Members of Amazon Prime, the retailer’s loyalty program, will be able to receive same-day delivery on the orders. Amazon said in a press release that it plans to expand the program as it tests the new concept. 

Amazon’s growing presence in Phoenix is only part of the equation in the retailer’s efforts to capture a greater share of the grocery market. 

Over the course of 2024, the online retail giant has been opening brick-and-mortar Amazon Fresh stores across the country in Virginia, Maryland, Illinois, and New Jersey, following a stalled effort in 2023. 

And in early October, Amazon opened its first Amazon Grocery location in downtown Chicago. The small-format store, which is located downstairs from a Whole Foods Market in the One Chicago Building, features name-brand products like Coca-Cola and Fritos chips. 

“Through Amazon.com, Amazon Fresh, Amazon Go, Whole Foods Market, third-party grocery partners, and this new shopping experience, we offer a wide selection of national and local brands plus fresh, high-quality produce, meat, and seafood,” Amazon said in a prepared statement.