Amazon’s Grocery Empire Grows: Same-Day Delivery Now Available in Over 1,000 Cities
Amazon has recently announced its most significant grocery expansion to date. The company has launched same-day delivery of fresh and perishable foods to over 1,000 U.S. cities and towns. Furthermore, it plans to extend this service to 2,300 locations by the end of the year. This service enables Prime members to order produce, dairy, meat, seafood, and frozen foods alongside regular Amazon products, all delivered within hours.
The expansion integrates thousands of perishable grocery items into Amazon’s existing same-day delivery network. Prime members can enjoy free delivery for orders over $25. For smaller orders, a fee of $2.99 applies. Non-Prime customers, however, will have to pay a flat rate of $12.99, regardless of the order size. In 2024, Amazon generated over $100 billion in grocery sales, excluding Whole Foods and Amazon Fresh.
The announcement has sent shockwaves through the grocery industry. Shares of Instacart plummeted by 11%, while traditional grocers like Kroger and Albertsons saw a fall of 4% and 2% respectively. Industry analysts predict that this move could significantly expand Amazon’s grocery market share. The company already controls 20% of the market, compared to Walmart’s 30%. The service has shown strong adoption in pilot markets, with 75% of users being first-time Amazon grocery customers.