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Amazon expands same-day grocery delivery to 1,000 cities

Amazon expands same-day grocery delivery to 1,000 cities

CBS News6 days ago
Amazon is expanding its same-day grocery delivery service to 1,000 cities and towns across the U.S., the company said Wednesday.
It's also introducing thousands of perishable grocery items to its offerings, and will expand services to a total of 2,300 new locales by the end of 2025. The move positions Amazon as a strong competitor to Instacart and Walmart+, both of which offer same-day grocery delivery services.
The new delivery offerings include options from the produce, dairy, meat, seafood, baked goods and frozen foods departments. Additionally, customers can have households goods, electronics, apparel and more, delivered on the same day that the orders are placed.
The service is available to Amazon Prime members for free, for orders that total at least $25. Nonmembers are also eligible for same-day delivery, but for a $12.99 fee.
According to the company, more than 150 million Americans rely on Amazon, where they've spent $100 billion on groceries and household goods in 2024 alone — which doesn't include sales from Whole Foods Market and Amazon Fresh.
"Overall, this expansion to offer same-day delivery of perishable groceries creates a one-stop shop for an array of customer needs," Telsey Advisory Group analysts said in a research note.
They added, "Importantly, we believe this is a strong move for Amazon, deepening relationships with and share of wallet among its Prime member customers, as well as positioning the company to compete better with other leaders in the grocery space, like Albertsons, Kroger, Target and Walmart."
The expansion marks one of Amazon's largest since it launched its grocery delivery service, and is aimed at making grocery shopping even more convenient for the online retail giant's customers, the company said.
"By introducing fresh groceries into our Same-Day Delivery service, we're creating a quick-and-easy experience for customers," Doug Herrington, CEO of Worldwide Amazon Stores said in a statement. "They can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project—and check out with one cart and have everything delivered to their doorstep within hours."
The service has proved so popular in existing cities that strawberries have knocked AirPods out of the top five best-selling products in regions where it's already available, Amazon said.
Raleigh, North Carolina; Milwaukee; Tampa, Florida and Columbus, Ohio; are among the new cities that Amazon is extending bringing same-day delivery to.
The same-day grocery delivery service is distinct from Amazon's existing grocery delivery offerings including Amazon Fresh and through Whole Foods Market and local purveyors, the company said.
The company said it's able to deliver perishable and temperature-sensitive goods by using insulated bags and more to ensure groceries remain at necessary temperatures throughout the delivery process.
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