Amazon Expands Same-Day Grocery Delivery to Challenge Walmart

Amazon has intensified its competition with Walmart by expanding its same-day delivery service to include perishable groceries. The service now reaches over 1,000 U.S. cities, with a target of 2,300 by the end of the year, and offers fresh products such as dairy, meat, seafood, and produce at no extra cost for Prime members. The move strengthens Amazon’s position in the trillion-dollar grocery market and leverages its logistics dominance to capture more household spending.

Groceries Delivered Like Electronics

Prime members can now add fresh food items to their orders and receive them the same day, provided purchases exceed $25. Non-members can access the service for a $12.99 delivery fee. By integrating perishables into its existing fulfillment network, Amazon is removing a significant barrier for customers who previously relied on traditional grocers.

Competitive Pressure Mounts

The announcement sent ripples through the retail and delivery sectors. Amazon’s stock gained more than 1% on the news, while competitors such as Walmart, Instacart, DoorDash, Kroger, and Uber saw declines. The market reaction underscores the potential impact of Amazon’s aggressive push into grocery delivery, particularly on companies with narrower logistics capabilities.

Scaling Through Logistics Power

Amazon’s expansion builds on its vast fulfillment network and a planned $4 billion investment aimed at bringing fast delivery to 4,000 rural communities by the end of 2025. This strategy could give the company a decisive edge in areas where competitors have struggled to provide efficient service, positioning Amazon as the go-to provider for both urban and rural grocery delivery.

The Next Phase of the Grocery Battle

By extending same-day delivery for perishables, Amazon is challenging Walmart+, Instacart, and other players that have carved out strong positions in the grocery fulfillment space. Analysts expect the move to drive Prime membership growth and put pressure on profit margins across the sector, especially for smaller grocers unable to match Amazon’s scale and delivery speeds.

Tips for Traders

• Watch retail and delivery stocks for volatility as competitive dynamics shift.

• Track Prime membership growth as a potential indicator of Amazon’s market penetration.

• Monitor rural delivery expansion as a signal for new customer acquisition potential.

• Look at logistics providers that could benefit from Amazon’s investment in fulfillment infrastructure.

• Stay alert to pricing strategies, as increased competition could spark promotional battles.