Amazon’s in-garage grocery delivery expands

The Key In-Garage Grocery Delivery service launched in five cities in November. Now it is available in more than 5,000 locations, free for Prime members.

Key questions

Offering additional service options could help Amazon hang on to delivery customers as they resume their normal routines, as well as entice tech-focused consumers to give the company’s grocery offerings a try.

The Key In-Garage Grocery Delivery works by allowing eligible Prime members to link their myQ Smart Garage Hub or compatible garage door opener to Amazon’s Key service, then selecting “Key Delivery” at checkout when they order groceries. Delivery drivers get one-time access for each order to put groceries from Amazon Fresh and Whole Foods into the customer’s garage. Shoppers who want to watch the delivery can use a Ring smart home camera or LiftMaster Smart Garage Camera.

The in-garage grocery delivery service is a way to keep deliveries safe from theft, damage and weather. The challenge is the perishable and frozen groceries, so this service may only be viable for shoppers who are either home or will be arriving home soon after their delivery. Amazon’s bags will be labeled to indicate whether chilled, frozen or dry goods are inside. To encourage customers to use the service, Amazon is offering a $20 credit for a limited time to first-time users.

Competition goes on

Amazon is ramping up its in-garage delivery service as the retail behemoth grows its grocery business and competes with Walmart over delivery innovation. In 2019, Walmart unveiled its InHome Delivery, which includes grocery delivery and returns and will soon offer prescription delivery.

While Amazon’s service only allows access to the garage, Walmart’s can have deliveries placed in garages or inside homes. Customers can choose to set up their own entry keypad to their home or garage or pay $50 for Walmart to install its smart garage opener or smart door lock, which can give access to the home or garage. Shoppers can watch their deliveries live on their phones through employees’ wearable delivery cameras.

In January, Walmart announced it would start testing unattended boxes from HomeValet to store grocery deliveries outside of customers’ residences. The boxes, which have three separate temperature-controlled zones, can be locked and unlocked through an app.

With online grocery shopping now soaring years ahead of pre-pandemic estimates, retailers are rapidly testing and adding new convenience-focused innovations to draw customers. Along with in-garage delivery, Amazon and Walmart are exploring other delivery technologies, like drones and autonomous vehicles. More than half of consumers would try a delivery service by a drone or robot, according to recent survey data from research firm Inmar Intelligence.