Amazon is extending its same-day delivery service for fresh foods to more than 1,000 U.S. cities and towns, with plans to reach at least 2,300 locations by year’s end. The latest rollout includes Raleigh, North Carolina; Tampa, Florida; and Milwaukee.
The program, first tested in Phoenix last year, lets shoppers add perishables like meat, eggs, and produce to their orders while browsing Amazon’s store. The company says fresh food customers tend to shop twice as often compared to those who haven’t tried the service.
How the Service Works
Prime members get free same-day delivery on orders above $25, while those below that amount incur a $2.99 fee. Non-Prime shoppers pay $12.99 per order regardless of size.
Amazon’s trial runs showed common purchases included strawberries, bananas, and avocados. Many of the buyers were first-time grocery customers who have since returned regularly.
The announcement shook the grocery and delivery sector. Instacart shares fell 11%, Kroger dropped 4%, Albertsons slipped 2%, DoorDash slid 3%, and Walmart declined 2%. Analysts at Mizuho said the move ramps up Amazon’s rivalry with Walmart, with Amazon building out grocery and rural networks while Walmart grows its marketplace and advertising arm.
Amazon’s Grocery Strategy
Amazon has been reshaping its grocery business by tweaking its Fresh store format, expanding delivery to non-Prime members, and pushing staples like paper towels, bottled drinks, and canned goods. Leadership changes have also influenced direction—Jason Buechel, CEO of Whole Foods, was appointed in January to oversee Amazon’s grocery division and has since moved to bring Whole Foods closer to Amazon’s overall grocery operations.
Author’s Opinion
Amazon isn’t just adding convenience—it’s conditioning shoppers to think of it as their go-to grocery store. By making fresh food part of its existing shopping experience, it’s closing the gap between online and in-store grocery habits, which could eventually make it harder for smaller players to compete.
Featured image credit: Marco Verch via CCNull
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