For the first time, individuals relying on the Supplemental Nutrition Assistance Program (SNAP), often known as food stamps, will have the option to spend their benefits at an exclusively online grocery store.
This development is crucial because numerous SNAP beneficiaries reside in food deserts, making it challenging to access high-quality groceries nearby.
Thrive Market has announced it will accept SNAP EBT payments across the contiguous United States starting February 26, marking a significant shift after years of lobbying the USDA, which administers SNAP, and following several pilot initiatives with retailers that operate both online and physical stores.
Since its inception in 2014, Thrive has specialized in delivering a wide array of grocery items directly to homes, emphasizing healthy, premium products. While normally requiring a $60 annual membership, SNAP participants will be granted free access, continuing Thrive's tradition of providing complimentary "Thrive Gives" memberships to those in need.
Nick Green, co-founder and CEO of Thrive Market, highlighted that over a third of SNAP beneficiaries are children, underscoring the program's impact on families. "Our core mission has always been to make healthy living easily accessible to everyone," Green stated.
Despite the ongoing "digital divide," the majority of low-income Americans now have internet access, frequently via smartphones, making online grocery deliveries a viable option, according to Green.
However, Green acknowledged challenges, such as unstable living situations among the most vulnerable, which Thrive addresses by collaborating with nonprofits to deliver to shelters and food programs.
Green noted that lower-income shoppers tend to order less frequently than paying members, a pattern expected to persist among SNAP users due to their limited budgets.
Looking ahead, Thrive aims to revolutionize online grocery shopping with advanced AI and machine learning technologies to streamline the shopping process. "Our goal is to halve the time it takes to build an order, which currently averages 20 to 30 minutes for a cart worth over $90 and containing more than 14 items," Green explained.
Integrating SNAP payments aligns with Thrive Market's business strategy and social mission as a certified B Corp. "By serving these members, we're not only fulfilling our mission but also opening up a new revenue channel. This initiative demonstrates how aligning with our social goals can also be beneficial for business," Green concluded.