A win-win situation could be on the horizon for both Amazon and consumers, as the online retailer begins business expansion plans and offers a wider array of healthy food choices.
The U.S. Department of Agriculture has announced Amazon will take part in the agency's latest program on food stamps: the SNAP Online Purchasing Pilot. Food stamp recipients will soon be able to purchase groceries online from Amazon.
These digital food stamps will aid more than 43 million low-income Americans under the Supplemental Nutrition Assistance Program (SNAP) of the government.
Food Stamps Go High-Tech With Amazon
The online retailer is hoping to expand its business, too. It has launched several programs to meet not only the mid-income segment of the market but also the low-income earners in the U.S.
In November 2016, Amazon began winning over customers with the new PrimeNow service that delivers grocery items ordered online.
"What it really is about is saving your time. There's lots of people who don't want to be in lines," said Stephenie Landry, head of PrimeNow.
Now that digital food stamps will be made available for use by the SNAP beneficiaries, Amazon may just about capture another segment.
Expanding food stamps to an online shopping platform allows for more choices and greater accessibility for those living in rural areas and neighborhoods that lack fresh and healthy food options, places otherwise called "food deserts."
SNAP Online Purchasing Pilot
The two-year initiative of the USDA will have both an online ordering and online payment scheme. Because of the risks in online payments, however, the pilot will be tested in a few locations first before it is offered nationwide. New York, New Jersey, and Maryland will take part in the initial phase of the program.
"We're looking forward to being able to bring the benefits of the online market to low-income Americans participating in SNAP," said USDA Secretary Tom Vilsack.
Aside from Amazon in the three states mentioned above, six other retail companies are slated to accept digital food stamps.
Other outlets participating in the program are FreshDirect New York; Safeway in Maryland, Oregon, and Washington; ShopRite in Maryland, New Jersey, and Pennsylvania; Hy-Vee in Iowa; Hart's Local Grocers in Rochester, New York; and Dash's Market in Buffalo, New York.
SNAP is the government's first line of defense against a hunger crisis. By innovating the platforms of the food program, it gives easy access to low-income earners who want more healthy food choices on the table. The SNAP Online Purchasing Pilot will begin in the summer.
