2 days ago
Amazon Announces Major Change For Groceries
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Amazon has announced that customers in more than 1,000 U.S. cities and towns will soon be able order perishable groceries, including produce, dairy, meat, seafood, baked goods and frozen foods, for same-day delivery.
The delivery giant will make the deliveries through its existing Same-Day Delivery network, with plans to expand the offering to roughly 2,300 locations by the end of 2025.
Why It Matters
The move places Amazon in more direct competition with Walmart+ and Instacart by lowering friction for customers to buy fresh food alongside nonfood items in a single checkout. Lower order minimums and free same-day delivery for Prime members could also nudge consumers toward Amazon and pressure rival delivery margins.
What To Know
On August 13, Amazon enabled same-day delivery of perishable groceries in more than 1,000 U.S. cities and towns and said it planned to reach roughly 2,300 locations by year-end.
The company had piloted the service in major cities across the U.S., including Phoenix, Orlando, and Kansas City.
Prime members receive same-day grocery delivery free on orders over $25 in most cities, while Prime orders below that minimum incur a $2.99 fee; non‑Prime customers can use the service for a $12.99 per-order fee.
Amazon said it had integrated perishable items into its temperature-controlled fulfillment network and used insulated, recyclable bags and a six-point quality check for items before delivery.
FILE—The logo of e-commerce company Amazon is pictured on parcels in Manta, Northwestern Italy, on March 29, 2024.
FILE—The logo of e-commerce company Amazon is pictured on parcels in Manta, Northwestern Italy, on March 29, 2024.
Marco Bertorello/AFP via Getty Images
"This marks one of the most significant grocery expansions for Amazon as the company introduces thousands of perishable food items into its existing logistics network that is already optimized for speed and efficiency," Amazon said in their statement.
"Customers will have the option to order produce, dairy, meat, seafood, baked goods, and frozen foods, alongside the millions of items such as everyday household essentials, electronics, fashion, home and garden, and more already available for Same-Day Delivery."
What People Are Saying
Doug Herrington, CEO of Worldwide Amazon Stores, said in a statement: "We're continuously innovating to make grocery shopping simpler, faster, and more affordable for our customers, especially Prime members.
"By introducing fresh groceries into our Same-Day Delivery service, we're creating a quick and easy experience for customers. 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."
What Happens Next
Amazon planned to expand same-day perishables to roughly 2,300 cities by year-end and to continue building out its same-day logistics footprint, a move that could prompt faster delivery offers and pricing responses from Walmart+, Instacart and delivery platforms.
