AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Amazon to Double Same-Day Grocery Delivery Coverage, Boosting Market Share and Stock Price
ByAinvest
Thursday, Aug 14, 2025 2:29 am ET1min read
Amazon plans to expand its same-day grocery delivery service to 2,300 locations by year-end, targeting fresh groceries for Prime members. The expansion aims to drive order growth and increase market share, with a $4 billion investment to double its delivery network by 2026. Competitors like Instacart, DoorDash, Kroger, and Walmart saw declines in stock prices following the announcement. Amazon sees the $800 billion US grocery market as a significant opportunity, with the industry projected to reach $875 billion by 2024.
Amazon has announced a significant expansion of its same-day grocery delivery service, aiming to reach 2,300 locations by the end of 2025. The company plans to introduce fresh groceries, including perishable items such as produce, dairy, meat, and seafood, to its existing delivery offerings. This move is part of Amazon's strategy to drive order growth and increase market share in the $800 billion U.S. grocery market, which is projected to reach $875 billion by 2024 [3].The expansion will be available to Amazon Prime members for free, provided the order total is at least $25. Non-members will have to pay a $12.99 fee. Amazon has already trialed the service in several cities, including Phoenix, Orlando, and Kansas City, and has seen strong customer adoption, with many new grocery customers returning to shop twice as often [3].
The expansion comes with a $4 billion investment to double Amazon's delivery network by 2026. This investment is part of Amazon's broader strategy to dominate the online grocery space. The company aims to leverage its existing logistics infrastructure to offer fast and efficient delivery of fresh groceries.
The news has had an impact on competitors in the grocery delivery sector, with stock prices for companies like Instacart, DoorDash, Kroger, and Walmart declining following the announcement. Amazon's aggressive expansion in the grocery sector is seen as a threat to these competitors, who are also expanding their delivery services to meet the growing demand for online grocery shopping.
Amazon's grocery ecosystem now spans four major banners: Amazon Fresh, Whole Foods Market, and Amazon. The company has already established itself as one of the largest grocers in the U.S., with over $100 billion in gross grocery sales in 2024, even excluding Whole Foods Market and Amazon Fresh [4].
References:
[1] https://www.cbsnews.com/news/amazon-expands-same-day-grocery-delivery-to-1000-cities/
[2] https://seekingalpha.com/news/4484645-amazon-rocks-the-grocery-sector-with-a-major-expansion-of-its-same-day-delivery-service-that-includes-perishable-food
[3] https://www.cnn.com/2025/08/13/food/amazon-grocery-delivery-expansion
[4] https://panasiabiz.com/111038/amazon-expands-grocery-delivery-for-prime-members/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet