Same-day grocery delivery is free for Amazon Prime members on orders over $25
Ecommerce giant Amazon has heated up the competition in the supermarket space, announcing yesterday that it will expand same-day delivery for meat, produce, and other perishables to over 1,000 US cities, aiming to reach 2,300 regions by the end of 2025.
Same-day grocery delivery is free for Prime members on orders over $25; smaller Prime orders cost $2.99, while non-members will pay $12.99 per order to get the service.
The rollout doesn’t replace the company’s businesses like Amazon Fresh and Whole Foods, the latter acquired for $13.7 billion in 2017.
The announcement rattled competitors: Instacart shares fell over 11%, while Kroger, Walmart, and Ahold Delhaize saw single-digit declines.
The expansion comes as Amazon works to strengthen its grocery footprint amid lagging traffic at its Amazon Fresh stores.
Analysts expect the expansion to strengthen Amazon’s position in the digital grocery market, where it’s already a major player, though Walmart still holds the top spot.