The news: Amazon is expanding its same-day delivery service for fresh groceries to more than 1,000 US cities and towns, with plans to reach 2,300 locations by late 2025.
- The expansion adds fresh groceries to Amazon’s same-day network, letting shoppers order perishables alongside other goods in one cart and receive them within hours. The service is supported by temperature-controlled facilities, insulated packaging, and quality checks.
- Prime members get free same-day grocery delivery on orders above $25 (or $2.99 under that threshold). Nonmembers can use the service for $12.99 with no minimum.
Early pilots in select cities showed strong uptake, especially among first-time grocery buyers. 75% of users in 2025 had never purchased perishables from Amazon before, and 20% reordered multiple times in their first month, according to Amazon. CEO Andy Jassy said these customers shop twice as often as those who don’t buy fresh food.
Competitors’ stocks fell following the announcement: Instacart parent Maplebear fell 11.5%, DoorDash dropped 3.8%, Kroger slid 4.4%, and Walmart—another same-day grocery provider—was down 2.6%.
Why it matters: The move is a direct play for market share in a grocery delivery category still dominated by in-store purchases.
Grocery has long been a challenge for Amazon despite its $100 billion in 2024 sales for groceries and household items outside of Whole Foods and Amazon Fresh. Nearly 60% of Prime members buy groceries from Walmart, outpacing Amazon’s 52%, per Coresight. The integration of fresh food into the core Amazon app removes friction from past models that required separate checkouts and fees.