If the new $9.95 fee rolls out nationally, it could help cover Amazon’s expenses—but perhaps at the cost of dominating the US online grocery market as rival Walmart nips at its heels for the lead

US digital sales of food and beverages from restaurants soared 123.8% last year, per eMarketer estimates. This massive increase was the result of more consumers using delivery services like DoorDash, Uber Eats, and Grubhub amid lockdowns and restaurant closures.

Thanks to a mature multichannel grocery sector in the UK, backed by well-established click-and-collect and delivery setups, UK consumers easily pivoted to online shopping during the numerous lockdowns. The result was category-leading growth in ecommerce sales.

In Italy, for example, it reportedly plans to open two new fulfillment centers and seven delivery stations. Spain, too, is a market where Amazon is investing, extending its Prime Now service to Seville and Málaga for supermarket chain Dia, and improving warehousing capabilities to speed up deliveries.

Amazon recently started buying up well-located US shopping malls to convert them into fulfillment centers, and it’s also ramped up other initiatives, like Amazon Key, its in-home delivery service—Amazon just announced the full rollout of in-garage grocery delivery service for US Prime members. These efforts can improve Amazon’s delivery capabilities to fend off competitors like Walmart and Target.

These lockers can accommodate grocery deliveries as well.

Offering fresh grocery delivery won't matter if it's not on time