Amazon Expands Same-Day Fresh Food Delivery to Over 1,000 US Cities, Plans 2,300 Locations by Year-End

Amazon plans to expand its same-day fresh food delivery service to over 2,300 US locations by year-end, aiming to increase grocery shopping frequency for customers. The move is expected to disrupt the grocery market, with shares of Instacart, Kroger, Albertsons, and Walmart falling following the announcement. Amazon has been evolving its grocery strategy by integrating Whole Foods Market and offering grocery delivery to non-Prime members.

Title: Amazon Expands Same-Day Fresh Food Delivery, Set to Impact Grocery Market

Amazon (NASDAQ: AMZN) has announced a significant expansion of its same-day fresh food delivery service, aiming to reach over 2,300 US locations by the end of the year. This move is part of the e-commerce giant's broader strategy to increase grocery shopping frequency among customers and disrupt the existing market landscape.

The expansion will allow customers to order perishable items such as produce, dairy, meat, seafood, baked goods, and frozen foods alongside other Amazon.com purchases. This service is currently available in more than 1,000 cities and towns and is expected to cover 2,300 locations by the end of 2025. Amazon's existing logistics network, optimized for speed and efficiency, will be leveraged to ensure the freshness of these perishable items.

Prime members will benefit from free same-day delivery for orders over $25, while non-Prime members will pay a $2.99 fee for the service. Amazon has also introduced a specialized temperature-controlled fulfillment network to maintain the freshness of perishable items, with each item undergoing a six-point quality check before delivery.

The announcement is likely to have a significant impact on the grocery market, with shares of major players such as Instacart (CART), Kroger (KR), Albertsons Companies (ACI), and Walmart (WMT) falling following the news. This expansion reflects Amazon's evolving grocery strategy, which includes integrating Whole Foods Market and offering grocery delivery to non-Prime members.

Amazon's move is part of a broader trend in the grocery sector towards same-day and next-day delivery services. The company is investing $4 billion to bring these services to more than 4,000 rural US communities by the end of the year, further solidifying its position in the market.

References:
1. [1] https://seekingalpha.com/news/4484645-amazon-rocks-the-grocery-sector-with-a-major-expansion-of-its-same-day-delivery-service-that-includes-perishable-food
2. [2] https://www.retailtouchpoints.com/topics/digital-commerce/amazon-expands-same-day-perishables-delivery-nationwide
3. [3] https://panasiabiz.com/111038/amazon-expands-grocery-delivery-for-prime-members/
4. [4] https://cybernews.com/tech/amazon-expands-grocery-delivery-to-fresh-foods-walmart-instacart/