Amazon launches one of its most ‘significant’ grocery expansions
Amazon is upping the competition in grocery with a major expansion of its same-day delivery service to include perishable items.
The company has rolled out same-day delivery of fresh perishable groceries to more than 1,000 cities and towns. It plans to expand the initiative to more than 2,300 areas across the U.S. by the end of 2026.
In the locations where the new service is now available, customers can now order fresh groceries alongside millions of everyday items such as household essentials, electronics, fashion products, and home and garden items with their same-day delivery orders. Amazon noted that customers can now order from “thousands” of fresh grocery items, including produce, dairy, meat, seafood, baked goods and frozen foods.
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Amazon has been piloting the service in regions including Phoenix, Orlando, Fla., and Kansas City, Mo. The company said consumers “embraced the convenience,” with strawberries, Honeycrisp apples, limes, and avocados ranking among the top 10 items in same-day delivery carts.
On the company's second quarter earnings call, CEO Andy Jassy said that 75% of customers who used the service this year are first time shoppers for perishables on Amazon, with 20% of customers who use the service returning multiple times within their first month.
Same-day delivery is free for Prime members on orders over $25 in most cities. It has a $2.99 fee if the order doesn’t meet that minimum. Customers without a Prime subscription can use the service for a $12.99 fee, regardless of order size.
Amazon said its specialized temperature-controlled fulfillment network ensures customers receive fresh, high-quality perishable grocery items, with every item undergoing a six-point quality check upon arrival and before leaving for delivery. Temperature-sensitive products are delivered in insulated bags to ensure items remain at appropriate temperatures, with the bags recyclable in most curbside recycling programs.
The service is designed to complement Amazon's existing grocery delivery offerings — including Amazon Fresh, Whole Foods Market and a variety of local grocery and specialty retailers on Amazon.com.
