NASHVILLE, Tenn. (WTVF) — Amazon is rolling out a new same-day grocery delivery service in Nashville that could potentially help families save money during the expensive holiday season. The retail giant is leveraging its existing fulfillment infrastructure to bring fresh groceries directly to customers' doors within hours of ordering.
NewsChannel 5 got an exclusive tour of Amazon's SNL-1 fulfillment center to see how the company can deliver orders so quickly. Site Leader Ming Siek showed us around the facility.
Instead of employees searching for items on shelves, the shelves robotically roll to the workers, significantly speeding up the process. "They're placing the products in the bin. Once we place it and put it in the shelving, then it becomes in stock and viewable to the customer," Siek said.
Grocery Delivery Comparison
Amazon has been gradually ramping up its grocery delivery service over the last month. "It's very similar to what you would expect at the store — anywhere from eggs, to milk to bread," Siek said.
The pricing appears competitive with other delivery services. A bunch of bananas costs 55 cents per pound on Amazon, compared to 69 cents per pound on Instacart.
For Prime members, orders over $25 qualify for free same-day delivery, while orders under $25 cost $2.99 for delivery. Non-Prime members pay $12.99 per order, which is comparable to other grocery delivery services.
Amazon Spokesperson Branden Baribeu emphasized the convenience factor for customers. "It's one less app you have to use. It really streamlines the process of ordering things for your home as well as your groceries," Baribeu said.
Amazon is also offering Thanksgiving turkeys through the service, with Butterball turkeys available for 69 cents per pound.
The double edged sword of automation
The company's focus on speed relies heavily on robotics and automation technology. "It's designed to make sure you get it at lightning quick speed," Siek said.
When asked about concerns that automation could eliminate human jobs, Siek said the technology is primarily focused on worker safety. "A lot of the advancement in the technology is to help our safety and make sure our associates are safer than they were 1 year ago, 2 years ago, 5 years ago," Siek said.
Amazon employs 28,000 full time or part time employees in Tennessee alone, not counting their independent contractors that help with delivery. This facility, located close to the airport, employs approximately 400 associates who start at $19.75 per hour. Siek said they're continuing to hire more employees as customer demand grows.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
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