Amazon is expanding its same-day delivery service for fresh foods to over a thousand cities across the United States, marking a success in the grocery business after years of strategic adjustments.
On Wednesday, Amazon announced that it will roll out the same-day delivery service for fresh foods in over 1000 cities and towns in the U.S., including cities like Raleigh in North Carolina, Tampa in Florida, and Milwaukee in Wisconsin. By the end of this year, the service will reach at least 2300 locations, with plans to further expand coverage to more areas in 2026.
In most cities, Amazon Prime members can enjoy the same-day delivery service for free on orders over $25. For orders below this minimum amount, a fee of $2.99 is required. Customers without Prime membership can also use the service but will need to pay a delivery fee of $12.99, with no minimum order amount.
Since last year, Amazon has been testing this service in a few cities such as Phoenix in Arizona, Orlando in Florida, and Kansas City in Missouri. Many customers welcomed the convenience this service brought, with a significant number of first-time fresh food buyers on Amazon showing a repurchase frequency twice that of non-fresh food buyers.
The company stated that this service will complement its existing grocery delivery business, including the fresh food delivery services of its subsidiaries Amazon Fresh and Whole Foods Market.
Amazon has launched and discontinued various grocery delivery options with mixed results in the past. The company has collaborated with some local grocery stores, including delivering groceries for customers through its own brands like Amazon Fresh and Whole Foods Market. However, the process of customers needing to navigate different online stores, checkout separately, and pay delivery fees sometimes led to confusion.
This business expansion by Amazon is expected to pose greater pressure on Walmart, Target, and other competitors offering grocery delivery services.
Following the announcement on Wednesday, the stock price of grocery delivery company Instacart plummeted by over 11%, while the stock prices of Kroger and Albertsons fell by about 4% and 3% respectively.
Walmart’s stock also decreased by 1%. The retail giant has been competing with Amazon in the fast delivery sector and currently offers same-day delivery services for groceries as well.