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Amazon Moves Deeper Into Grocery Business By Participating In USDA Online Food Stamp Program

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Amazon groceries, bag

Amazon, along with six other grocers, signed up to help the government test a pilot program that allows low-income families in the Supplemental Nutrition Assistance Program (formerly the Food Stamp program) buy groceries online.  

Safeway, ShopRite, FreshDirect, Hy-Vee, Hart’s Local Grocers and Dash’s Market will join Amazon in the two-year pilot set to begin this summer and test online SNAP purchasing across urban and rural markets, RetailDive reports. Noticeably absent from the list is Walmart, the largest grocer in the country.

SNAP payments make up an average of 5.8% of grocers' sales, a Food Marketing Institute poll show, and the program could provide a boost to Amazon and its future convenient store and curbside pickup locations — though the e-commerce behemoth did claim it’s not planning a massive grocery store expansion. [RD]