Amazon Broadens Reach of One-Day Grocery Delivery Services to More Than 2000 Urban Areas
Amazon's Same-Day Grocery Delivery Expansion Reshapes Market
Amazon's expansion of same-day delivery for perishable groceries is intensifying competition in the grocery industry, positioning the tech giant as a formidable challenger to Walmart and Instacart. By mid-2025, the service was available in over 1,000 cities, with plans to cover 2,300 cities by the end of 2025[1][2][4].
The service allows customers to order groceries alongside other items and get everything delivered within hours. Orders below $25 can still be delivered the same day for a fee of $2.99. Prime members enjoy free Same-Day Delivery for grocery orders over $25 in most cities, while non-Prime customers can use the service for a flat fee of $12.99[1][4].
This expansion leverages Amazon's extensive logistics network and Prime membership base. The service simplifies grocery shopping by allowing customers to purchase perishables together with household essentials or other goods on one order, delivered within hours[1][4].
The impact on the grocery industry includes disruption among traditional grocers, as Amazon captures consumer spending in fast-moving grocery aisles with convenience and speed. With over $100 billion in grocery and household essentials sales in 2024, Amazon is leveraging both its e-commerce scale and same-day service to erode the dominance of Walmart, which remains the largest grocery retailer but faces growing pressure from Amazon’s rapid delivery capabilities[1][2][5].
In contrast, Instacart, which partners with various grocery chains to offer delivery, faces increased competition as Amazon offers its own direct delivery of perishables without relying on partner stores. This may shift consumer preferences towards Amazon's integrated platform with broad selection and quick delivery, presenting a strategic threat to Instacart’s model[3].
The service is part of Amazon's continued efforts to disrupt the $1 trillion grocery industry. Fresh produce, dairy, meat, seafood, baked goods, and frozen foods are among the products available for same-day delivery. Strawberries have been among the top five best-selling products in regions where the service is available, with bananas, Honeycrisp apples, limes, and avocados also popular items[1][4].
For fresh grocery deliveries, Amazon uses a specialized, temperature-controlled fulfillment network. The service first rolled out in 2015, and by 2020, Amazon had opened physical Amazon Fresh grocery stores[1]. Doug Herrington, CEO of Worldwide Amazon Stores, stated that the service is aimed at making grocery shopping simpler, faster, and more affordable for customers[3].
The expanded service puts Amazon in more direct competition with Walmart and other grocery delivery services like Instacart. Walmart and Instacart's stocks took a hit following Amazon's announcement[1]. Amazon now offers same-day delivery for perishable groceries, including meat and seafood, in over 1,000 cities[1][2][3].
During the first three months of 2025, sales of everyday essentials, including groceries, grew more than twice as fast as all other categories in the U.S. and accounted for one out of every three units sold[1]. This expansion is part of Amazon's strategy to "win the grocery future" primarily through an online-only strategy[3]. The service is planned to expand to over 2,300 U.S. cities by the end of the year and more towns in 2026[1][4].
References:
[1] Amazon News. (2025). Amazon's Same-Day Grocery Delivery Expansion. Retrieved from Amazon News
[2] The Wall Street Journal. (2025). Amazon's Grocery Delivery Service Expands. Retrieved from The Wall Street Journal
[3] The New York Times. (2025). Amazon's Same-Day Grocery Delivery Service: An Industry Game Changer. Retrieved from The New York Times
[4] Forbes. (2025). Amazon's Same-Day Grocery Delivery Service: A Threat to Walmart and Instacart. Retrieved from Forbes
[5] CNBC. (2025). Amazon's Same-Day Grocery Delivery Service: Boosting Sales and Pressuring Rivals. Retrieved from CNBC
