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Amazon Expands Two-Hour Whole Foods Delivery to Catch Walmart

An experiment that began in August has since been rolled out to almost 30 U.S. cities, including Los Angeles, Houston and Detroit.

A Whole Foods Market store in Franklin, Tennessee.

A Whole Foods Market store in Franklin, Tennessee.

Photographer: Luke Sharrett/Bloomberg

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Ever since Inc. bought Whole Foods in 2017 for $13.7 billion, shoppers and investors alike have wondered how the e-commerce giant would integrate the upscale grocer into its sprawling online operation. Now, after two years of tinkering, Amazon is betting big on quick delivery from Whole Foods.

In August, the company began a pilot project in select cities including Denver and Portland, Oregon. Mining the purchase histories of  Whole Foods shoppers who use their Prime memberships for discounts, Amazon zeroed in on items they buy routinely in physical stores. Then, the company began suggesting the same products on its main website with an enticement: free two-hour delivery.