Amazon expands grocery delivery nationwide
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Amazon is pushing deeper into the grocery sector by expanding its same-day delivery service to more than 2,300 cities across the United States by the end of the year. This move makes grocery delivery available to millions of households that were previously outside Amazon’s core service areas. For the first time, non-Prime customers can also use the service, paying a flat fee of $12.95 per delivery. Prime members continue to receive free delivery on orders over $25.
New access for non-Prime users
By widening access beyond Prime members, Amazon is opening its grocery ecosystem to a broader customer base. The service now covers both Amazon Fresh and Whole Foods orders, and will operate in more than double the number of cities it previously reached. Orders under the $25 threshold still incur fees for Prime members, starting at $6.95 depending on location.
Amazon is positioning this expansion as a long-term investment in customer convenience and market growth. A reported $4 billion has been allocated to improve rural and small-town logistics, including fulfillment centers and vehicle routes. This enables service to areas typically neglected by traditional grocery delivery networks.
Impact on competitors
Following the announcement, stock prices of major competitors reacted quickly. Shares of Instacart, DoorDash, and Kroger fell, reflecting concern over Amazon’s ability to undercut or outscale rivals. Amazon currently ranks second in online grocery sales in the United States, behind Walmart but ahead of Instacart. Analysts expect this expansion to narrow the gap as Amazon increases its reach in suburban and rural markets.
Unlike other grocery delivery apps that rely heavily on third-party partnerships and gig workers, Amazon controls its own fulfillment infrastructure. This gives it a level of consistency and cost control that competitors find difficult to match.
Technology behind the expansion
The company’s use of predictive software and localized inventory systems allows it to tailor offerings by ZIP code. Delivery fleets are also being adapted for energy efficiency in regions with longer routes and lower population density. Amazon aims to increase not just speed, but reliability in these new zones.
Local sourcing and inventory balancing now play a role in stocking decisions, helping Amazon keep perishable items closer to demand centers. AI tools are also being used to improve delivery window accuracy and reduce costs in less densely populated areas.
This expansion is less about headlines and more about reach. By increasing access, improving systems and testing new markets, Amazon is setting a new standard for how grocery delivery is scaled and sustained.
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