Amazon has significantly expanded its same-day grocery delivery service to include perishable items, now available in over 1,000 U.S. cities, with plans to reach 2,300 by the end of 2025. This strategic enhancement allows customers to combine fresh produce, meats, dairy, and frozen goods with their usual Amazon orders, all delivered within hours.
The service is free for Amazon Prime members on orders exceeding $25, with a $2.99 fee for orders below that threshold. Non-Prime members will incur a $12.99 fee. This move integrates Amazon's grocery offerings, including those from Whole Foods Market and Amazon Fresh, into a more unified shopping experience. The expansion has already impacted competitors, with Instacart's share value dipping by approximately 11-12%, Walmart's by about 2%, and Kroger's by around 4-5%. Amazon's stock saw a modest increase of about 1-1.23% following the announcement. Analysts maintain an optimistic outlook for Amazon, with average price targets for the close of 2025 ranging from $226.23 to $275, suggesting potential upside of over 19% in some projections. This expansion underscores Amazon's commitment to capturing a larger share of the grocery market by leveraging its extensive logistics network and technological advancements, positioning it as a formidable competitor in the rapidly evolving online grocery landscape.