For years, Amazon.com Inc. has targeted shoppers who can afford a $99 Prime subscription. The announcement last week that the company will deliver groceries to food-stamp recipients shows Amazon also wants to appeal to lower-income shoppers, traditionally Wal-Mart’s bailiwick.
Amazon is authorized to start the experiment this summer in New York, New Jersey and Maryland. FreshDirect, Safeway and ShopRite are also joining the Supplemental Nutrition Assistance Program (SNAP), which last year provided more than $66 billion of help to 44.2 million needy Americans. This will be the first time SNAP has accepted online payment for groceries.