Amazon rocks the grocery sector with a major expansion of its same-day delivery service that includes perishable food

Amazon is enhancing its grocery delivery service by offering same-day delivery of fresh grocery items to customers in over 1,000 U.S. cities, with plans to expand to more than 2,300 locations by the end of the year.

The service includes a wide variety of perishable items such as produce, meat, and dairy, allowing customers to conveniently mix grocery orders with non-food items for quick delivery.

Amazon Prime members can enjoy free same-day delivery for orders over $25, while those under this threshold can opt for a $2.99 delivery fee, increasing the service's accessibility.

This expansion puts competitive pressure on other grocery retailers, leading to declines in their stock prices following the announcement.

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Amazon Continues to Transform Grocery Delivery

On Wednesday, Amazon (NASDAQ:AMZN) unveiled a significant development in its grocery delivery service. The e-commerce leader announced that fresh grocery items will now be available for same-day delivery to customers in over 1,000 cities and towns across the U.S. Furthermore, Amazon aims to extend this service to more than 2,300 locations by year-end.

As part of this rollout, Amazon will incorporate thousands of perishable items into its already efficient logistics network. This extensive selection will include produce, dairy, meat, seafood, baked goods, and frozen foods. In addition to these new offerings, customers can still enjoy same-day delivery of millions of other products, such as everyday essentials, electronics, fashion, home and garden supplies, and much more.

Amazon noted that customers have welcomed the convenience of ordering perishable groceries—like bananas, milk, eggs, bread, and ice cream—alongside non-food items since the service was first introduced in select markets, including Phoenix, Orlando, and Kansas City.

"By integrating fresh groceries into our Same-Day Delivery service, we’re ensuring a seamless experience for our customers. They can combine orders for milk with electronics, fresh fruits and vegetables with novels, and frozen pizzas with tools for their next DIY project—all in one cart and delivered to their doorstep within hours," the company stated from its Seattle headquarters.

For Amazon Prime members, same-day delivery is complimentary for orders exceeding $25 in most locations. For purchases that fall below this threshold, members can opt for same-day delivery for a fee of $2.99.

This expansion adds competitive pressure to a variety of retailers, including Walmart (WMT), Target (TGT), Instacart (CART), Kroger (KR), Albertsons Companies (ACI), Sprouts Farmers Market (SFM), Dollar General (DG), and Dollar Tree (DLTR). As a result, premarket trading showed a decline in these grocery-related stocks.