Today on Recur Now, we talk a new benefit for Amazon Prime members: free grocery delivery. We also see Freshworks wade into the artificial intelligence market, and Lyft dramatically reprices its subscription service.
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Amazon Fresh ditches its monthly fee for Prime members
In an effort to add another perk to the Prime membership and compete with the traditional grocery stores, Amazon Fresh eliminates its monthly fee in favor of free delivery.
Originally, Amazon was charging $15 per month for Amazon Fresh, its grocery delivery service, on top of its Prime subscription cost. If you're already paying for a Prime membership you can capitalize on free delivery on any order of $35 in two hours or less.
We see this as Amazon competing with big box stores like Walmart and Target's subscription delivery service, Shipt, which costs $99 a year and free delivery on all orders over $35. But, this is also about Amazon battling food delivery services like DoorDash and meal kit companies like HelloFresh that so many urban subscribers rely on for convenience.
What will happen to Imperfect Foods and Misfits Markets, two smaller-scale grocery delivery services? In an effort to reduce waste, the two companies deliver produce and food items they couldn't sell in store. An admirable effort and we wouldn't want Amazon to knock them out of business.
Regardless of Amazon's angle, all of these grocery delivery options reaffirm the shift toward subscription.
Freshworks meets Freddy
Freshworks, the SaaS unicorn, is wading into the AI game and leveraging its Chennai roots with a partnership with the Robert Bosch Centre of Data Science and Artificial Intelligence at the Indian Institute of Technology, Madras (ITT Madras).
Freddy is the name of the AI engine that has the capability to answer customer's queries and also escalate issues to human partners along with the context and chat conversations, if any.
STS Prasad, SVP of Engineering of Freshworks said:
"The goal with the AI software is to take lead scoring beyond simple ratings and provide next-step recommendations so our customer can chase the right lead and achieve optimal conversions."
Let's look at the big picture. Salesforce has its own version of AI capabilities (Einstein) and it looks like Freshworks wants to compete. It's obvious that AI and recommendation engines are becoming more prominent in SaaS offerings.
Lyft dramatically reprices its subscription plan
Ride sharing service, Lyft, is completely remodeling its subscription pricing plan, including a name change to Lyft Pink.
Lyft is ditching its All-Access Plan that cost $299 per month for up to 30 rides. This plan was proof of the necessity of reading the fine print. Each ride covered in the All-Access Plan was worth $15, but if customers took a route worth more than $15, they had to pay the difference. However, if customers took a route less than $15, they were not credited the difference.
ProfitWell Pricing Strategist Gina Eygenson offers insight on why Lyft is restructuring.
"I would assume they're making the switch because they weren't seeing the volume of sign-ups, and ultimately loyal Lyft customers as opposed to other modes of transport that they wanted to based on both ends of the spectrum not working."
Lyft Pink is a fraction of the cost at $19.99 and month and comes with a 15% discount on all car rides and a few additional perks like priority airport pickup.
"What you're able to do is lock in far more users who are going to click into the Lyft app before they price shop anywhere else, and are less likely to price shop. Ultimately at $20, it isn't a huge purchase decision, but what you're buying is 30 days of loyalty where they are likely to spend a far greater amount than whatever you're subsidizing with that discount."
If you're sold on Lyft Pink, hold your horses, there's waitlist, but you can sign-up for early access.
Today's Weekend Wisdom comes from Katie Burke, Chief People Officer at HubSpot. Katie
"I welcome our culture skeptics... they help our company get better"
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