Amazon announced Tuesday plans to offer no-fee delivery from restaurants in one hour or less in Dallas, Texas, and in New York City’s borough of Manhattan to Amazon Prime members, the e-commerce behemoth’s latest volley in the food delivery arms race underway between tech companies.
“We are excited to offer Prime members in Dallas free one-hour delivery from some of the city’s best local restaurants,” said Gus Lopez, general manager, Amazon Restaurants. “Whether you are looking to dine at home or need dinner delivered to the office, Amazon Restaurants on Prime Now offers customers a broad selection of cuisines with a guarantee that customers will pay the same price with Prime Now as they do at the restaurant.”
Amazon promises delivery from participating restaurants in no more than one hour with no menu markup or added delivery service fee to Prime members, or the company will refund the price of the item (if an item is found to be priced higher online than in the store within 24 hours of the order).
With the announcement, in addition to Manhattan and Dallas the offer is available now in 10 cities, including Seattle, San Francisco, Los Angeles, Chicago, San Diego, Austin, Baltimore, and Portland, Oregon.
Among more than 350 restaurants offering the new service in Manhattan are some heavy hitters in the New York City dining scene, including Momofuku Milk Bar and John’s of Bleeker Street, as well as more quotidian eateries, like Le Pain Quotidian’s 34 locations across the island. Dallas offerings include local favorites like Blue Goose Cantina and Roti Grill.
Though Amazon is announcing the delivery offering as “free” it isn’t really free, since it’s available only to members of Amazon Prime, which costs $99 per year or $10.99 per month. Though the service offers a great value to people who are already Prime members, restaurants pay a steep commission to participate—27.5% of the check, according to The New York Post. That’s a little lower than the 30% reportedly charged by Uber for food delivery, but still higher than the 12.5% charged by the delivery service Seamless at its cheapest rate offering to restaurants, which rises significantly higher if a restaurant owner wants to appear higher in search results.