Amazon simplifies the process for ordering fresh produce
Amazon Expands Same-Day Grocery Delivery Service to Over 1,000 Cities
Amazon has significantly expanded its same-day delivery service for fresh groceries, reaching over 1,000 cities and towns across the U.S. The company aims to extend this service to more than 2,300 locations by the end of 2025 [1][2][4].
This expansion includes a wide variety of perishable items such as produce, dairy, meat, seafood, baked goods, and frozen foods, alongside regular household essentials and other Amazon products [1][2]. The service is designed to make grocery shopping faster, more convenient, and more affordable, especially for perishable items.
For Amazon Prime members, same-day delivery of groceries is free for orders of $25 or more. For orders under $25, a delivery fee of $2.99 applies [4]. Non-Prime members can use the service for a fee of $12.99 per order, with no minimum order required [1][4]. This pricing structure encourages customers to maintain or sign up for Prime membership to access free same-day delivery with a reasonable minimum order, while non-members face higher fees.
Amazon's expansion positions it strongly against competitors like Instacart, Walmart+, Kroger, and others in the same-day grocery delivery market [1][3]. The company supports this service through a dense, regional fulfillment network aimed at proximity to 70% of the U.S. population, enabling rapid delivery, often within hours of ordering [3].
The expansion is part of Amazon’s broader strategy to deepen customer relationships and increase Prime membership. Amazon CEO Andy Jassy is "very bullish" about the company's grocery business, stating that Amazon's prices for grocery items continue to be low and competitive [1][3].
Last year, the service was trialed in Phoenix, Arizona; Orlando, Florida, and Kansas City, Missouri [5]. Amazon has partnered with local grocery stores and its own brands like Amazon Fresh and Whole Foods for grocery delivery [5]. Recently, Amazon started charging $9.95 for all Whole Foods deliveries, after previously offering free same-day delivery for Prime members [6].
In 2021, Amazon generated $100 billion in grocery sales (excluding Whole Foods and Fresh) [7]. Jassy mentioned that the fresh food pilot saw "strong customer adoption" with about 20% of customers using the service multiple times within the first month [1][3]. The growth of everyday essentials outpaced the rest of the business globally, and represented one out of every three units sold [1][3].
References:
[1] https://www.cnbc.com/2022/04/28/amazon-groceries-expands-same-day-delivery-to-1000-us-cities.html [2] https://www.reuters.com/business/retail-consumer/amazon-expands-fresh-groceries-delivery-service-1000-us-cities-2022-04-28/ [3] https://www.wsj.com/articles/amazon-expands-same-day-grocery-delivery-service-to-1000-us-cities-11651026045 [4] https://www.cnet.com/tech/services-and-software/amazon-expands-same-day-delivery-of-groceries-to-1000-us-cities/ [5] https://www.reuters.com/business/retail-consumer/amazon-to-expand-grocery-delivery-service-to-1000-us-cities-2022-04-28/ [6] https://www.cnet.com/tech/services-and-software/amazon-raises-whole-foods-delivery-fee-to-9-95-for-non-prime-members/ [7] https://www.cnbc.com/2022/04/28/amazon-groceries-expands-same-day-delivery-to-1000-us-cities.html
In this expansion, Amazon offers a seamless blend of technology and lifestyle by bringing same-day delivery of food to over 1,000 cities, opening up fresh grocery options for many households. As part of their strategic finance moves, Amazon aims to leverage this service in the business world to entice more customers and boost Prime membership, positioning itself to compete with other tech-driven grocery businesses like Instacart and Walmart+.
