Amazon is shaking up the grocery game with a bold move that could redefine how Americans shop for perishables. The e-commerce giant has rolled out same-day delivery for fresh foods like meat, eggs, and produce across more than 1,000 U.S. cities and towns, putting pressure on traditional retailers and delivery rivals alike.
According to CNBC, this expansion, aimed at capturing a bigger slice of the grocery market, plans to reach at least 2,300 locations by the end of 2025.
Amazon's journey with this service began last year with a test in Phoenix, followed by additional cities this year. Shoppers in these test markets have embraced the convenience, often adding items like strawberries, bananas, and avocados to their carts.
The company announced this wide rollout on a recent Wednesday, targeting diverse locations such as Raleigh, North Carolina; Tampa, Florida; and Milwaukee. This isn’t just a small trial—Amazon is betting big on fresh foods to drive online shopping habits.
For Prime members, the deal gets even sweeter: same-day delivery is free on orders over $25 in most cities, with a modest $2.99 fee for smaller orders. Non-Prime shoppers, however, face a steeper $12.99 fee regardless of order size.
Amazon’s data shows a compelling trend—many first-time grocery buyers in these markets are returning to shop twice as often when using same-day delivery for fresh items. This suggests a sticky new habit that could lock in customer loyalty.
The announcement sent shockwaves through the market, with competitors feeling the heat immediately. Instacart’s stock plummeted 11%, while supermarket giants Kroger and Albertsons saw shares drop 4% and 2%, respectively.
Even DoorDash and Walmart, a leader in speedy grocery shipping, weren’t spared—stocks slid 3% and 2%, respectively. This market reaction underscores the threat Amazon poses as it muscles into the perishable delivery space.
Analysts at Mizuho noted the intensifying rivalry, particularly with Walmart, as Amazon doubles down on grocery and rural expansion while Walmart focuses on its marketplace and advertising strengths. This clash of titans could reshape consumer options in the years ahead.
Behind this delivery push lies a broader transformation of Amazon’s grocery ambitions. Over the past few years, the company has been retooling its approach, including adjustments to its Fresh grocery stores to draw more foot traffic.
Amazon has also opened fresh food delivery to non-Prime members, broadening its reach. Additionally, it’s emphasizing growth in household staples—think paper towels, canned goods, and bottled drinks—to bolster its everyday essentials lineup.
The company’s acquisition of Whole Foods Market for $13.7 billion in 2017 marked a pivotal moment. More recently, under the leadership of Whole Foods CEO Jason Buechel, Amazon has moved to integrate Whole Foods more closely with its overarching grocery strategy.
For investors, Amazon’s aggressive pivot into groceries signals both opportunity and risk—while it could capture significant market share, the competitive landscape is fierce. Keeping an eye on stock movements in rivals like Instacart or Walmart might reveal undervalued plays or cautionary tales.
For shoppers, especially those wary of bloated prices or inefficient systems, Amazon’s same-day delivery offers a chance to save time and potentially money, particularly for Prime members. If you’re not yet a member, weigh the $12.99 fee against the convenience—frugality matters, but so does efficiency in a busy world.