Amazon.com Inc. has announced a major expansion of its same-day grocery delivery service, allowing the company to compete more actively in the growing grocery delivery market.
Expansion of Delivery Service
The service is now available in over 1,000 U.S. cities and plans to increase its reach to 2,300 locations by year-end. Amazon is investing $4 billion to enhance delivery services for more than 4,000 rural communities.
Competition with Other Players
The service is free for Prime members on orders over $25, while non-Prime customers pay a $12.99 fee regardless of order size. This directly challenges services like Walmart+ and Instacart.
Amazon's Strategic Initiatives
The removal of the additional $9.99 fee for Prime members on free grocery deliveries and the reduction of the minimum order threshold to $25 enables Amazon to attract customers more aggressively.
Amazon's expansion into grocery delivery demonstrates the company's ambition to strengthen its position in a market where it has not yet established dominance.
