Amazon has broadened its same‑day delivery service to include perishable groceries in more than 2,300 U.S. cities and towns, extending the reach of its Amazon Fresh and Whole Foods‑powered network. The expansion builds on an August launch that first allowed customers to order fresh fruits, vegetables, dairy, meat, seafood, and baked goods for same‑day delivery, and it is expected to add a new high‑margin, high‑frequency channel to Amazon’s retail business.
The rollout relies on a temperature‑controlled fulfillment network that inspects each order with a six‑point quality check and packages temperature‑sensitive items in insulated bags. The system guarantees that perishable goods arrive intact, a critical requirement for grocery customers who expect the same reliability as Amazon’s broader same‑day delivery service.
Since the initial August launch, perishable grocery sales have surged 30‑fold, and customers who add fresh groceries to their same‑day orders shop about twice as often as those who do not. The data suggest that the service is not only driving volume but also deepening customer engagement within the Prime ecosystem, turning one‑off grocery trips into regular, high‑frequency purchases that support Amazon’s broader retail strategy.
The expansion has immediate competitive implications. Instacart’s shares fell 6% in morning trading on the day of the announcement, reflecting market concern that Amazon’s logistics advantage and Prime membership base could erode Instacart’s market share. Walmart+ and other grocery‑delivery platforms are also likely to feel pressure as Amazon leverages its existing warehouses and Whole Foods integration to offer faster, more reliable service.
Strategically, the move positions Amazon at the heart of the quick‑commerce trend, where consumers expect 10‑ to 30‑minute deliveries of essentials. By embedding perishable groceries into its Prime benefits—free same‑day delivery on orders over $25 in most areas—Amazon strengthens the value proposition of Prime, encourages higher spend, and creates a virtuous cycle of increased order frequency and cross‑selling of higher‑margin products.
Doug Herrington, CEO of Worldwide Amazon Stores, said, “We’re seeing customers combine fresh grocery orders with their regular Amazon purchases—electronics, gifts, clothing, household essentials—in ways that make their lives easier and save them valuable time.” The comment underscores Amazon’s intent to weave grocery into the broader shopping experience, reinforcing customer loyalty and driving incremental revenue across its retail portfolio.
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