Amazon Expands Same-Day Grocery Delivery, Pressuring Competitors

Amazon has escalated its grocery delivery ambitions, announcing a major expansion of same-day perishable deliveries across 1,000 locations. The MOVE sent shockwaves through retail stocks as the e-commerce giant undercuts rivals on both service and pricing.

The company will waive delivery fees for Prime members on orders over $25—$10 below Walmart and Target's minimum thresholds. By 2025, Amazon plans to blanket 2,300 communities with the service, directly challenging Instacart's dominance in rapid grocery fulfillment.

Market reaction was immediate: Shares of Instacart, DoorDash and traditional grocers slid on the news. "We're continuously innovating to make grocery shopping simpler, faster, and more affordable," said Amazon's retail CEO Doug Herrington—a statement that reads as both promise and warning to competitors.