Amazon’s Same-Day Grocery Delivery Service Ramps Up Competition with Instacart

Amazon has significantly expanded its same-day delivery service for perishable grocery items, now available in over 2,300 cities and towns across the U.S.

Launched earlier this year, the expanded service allows customers to easily add fresh produce, seafood, milk, and more to their regular Amazon shopping orders.

The response from customers has been positive, with fresh groceries now ranking among the top 10 most-ordered same-day items on Amazon.

Analysts see Amazon’s rapid expansion in same-day perishable delivery as a strategic move to strengthen its position in the competitive grocery market.

With the ability to serve both small towns and large metro areas, Amazon’s expanded grocery offering puts pressure on competitors like Instacart and enhances the value of Amazon Prime membership.

In most areas, same-day deliveries are free for Amazon Prime members on orders over $25, making the service even more attractive.

Amazon has expanded its fresh grocery selection for same-day delivery by over 30% since the summer, including products from Whole Foods Market and Amazon Grocery, the company’s private brand.

Customers who add fresh groceries to their orders are shopping more frequently, indicating a shift in shopping patterns.

Amazon plans to further expand same-day perishable grocery delivery to more cities and towns in the coming year.

As part of its grocery innovation, Amazon is testing Amazon Now, an ultra-fast delivery option promising delivery in 30 minutes or less.

Amazon’s history in the grocery space includes the launch of Amazon Fresh in 2007, Amazon Fresh grocery pick-up sites, and the opening of Amazon Fresh grocery stores starting in 2020, in addition to the acquisition of Whole Foods Market in 2017.