Business
business
Rani Molla
8/13/25

Amazon has the lowest free delivery minimum among grocery stores

Amazon’s announcement today that Prime members across the country can get free same-day grocery delivery sent grocery stocks down, including Walmart, Albertsons, and Kroger.

The online retail giants latest push into the grocery business might do more than gobble up revenue from competitors; it could eat into other grocery chains margins by forcing them to lower their free delivery thresholds for subscribers, according to a note from Barclays Equity Research, which adds that Amazon’s $25 free grocery minimum is set lower than all its competitors.

“Overall, it is mostly about convenience, less about price, although there are some considerations on that too (with [Amazon having] a lower free delivery threshold and potentially some lower prices vs other services),” the analysts wrote.

Members of Instacart+, however, get free delivery on orders over $10, though they’re also on the hook for a $99 yearly service fee.

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Volkswagen is reportedly closing in on its own, separate tariff deal with the US

In a bid to get its own tariff rate below the 15% applied to most EU exports, Volkswagen is dangling big US investments.

Speaking at a trade show Monday, VW CEO Oliver Blume said the automaker is in advanced talks on a deal to limit its own tariff burden. Volkswagen reported a tariff cost of $1.5 billion in the first half of the year.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

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