Skip to content

Amazon Announces Assault on Instacart and Walmart

Amazon significantly increases the reach of its daily fresh grocery deliveries, now available in over 1,000 American urban areas, with a goal to extend this service to approximately 2,300 urban centers by the year 2025's end.

Amazon Wages Assault on Instacart and Walmart
Amazon Wages Assault on Instacart and Walmart

Amazon Announces Assault on Instacart and Walmart

In a significant move, Amazon has extended its same-day delivery service for fresh groceries to over 1,000 cities and towns across the United States. This expansion, which aims to reach more than 2,300 locations by the end of 2025, allows customers to order thousands of perishable grocery items alongside millions of non-grocery products in a single cart for delivery within hours.

The service, which includes produce, dairy, meat, seafood, baked goods, and frozen foods, is part of Amazon's strategy to leverage its logistics and technology to challenge the market share of incumbent supermarket chains. Prime members enjoy free same-day delivery on orders over $25; smaller orders incur a small fee, while non-members pay a higher flat rate per order.

This aggressive expansion has put downward pressure on the stocks of major grocery retailers such as Walmart, Kroger, and Target. Analysts view Amazon's improved convenience for grocery delivery as disruptive to traditional grocers who may struggle to match Amazon's breadth, speed, and integration of fresh groceries with general merchandise in a single delivery.

Amazon's focus with this expansion is on grocery and rural infrastructure, while Walmart is strengthening its marketplace and advertising business. This strategic move by Amazon is expected to have a significant impact on the grocery retail sector in the medium to long term.

As Amazon continues to expand its same-day delivery of fresh groceries, it has already made its presence felt in cities such as Raleigh, Tampa, and Milwaukee. The company has been refining its grocery strategy in recent years, making fresh delivery available to non-Prime members and adjusting Fresh stores to attract more customers. Non-Prime customers pay $12.99 per delivery, regardless of order value.

Amazon's stock price increased by 1.4% to $224.56 on Thursday, breaking above its July high of $236.53. The AKTIONÄR's price target for Amazon's stock is €240.00. However, this expansion has weighed on the stocks of competitors, causing Instacart to lose over 11%, Kroger to fall by about 4%, and Walmart's stock to drop by 2.5%.

In summary, Amazon's expansion of its same-day grocery delivery service is a significant move in the grocery retail sector. The company's focus on fresh groceries and rural infrastructure, combined with its logistics and technology, is expected to challenge the market share of incumbent supermarket chains and disrupt the traditional grocery delivery model.

  1. The expansion of Amazon's same-day delivery service for fresh groceries, which includes produce, dairy, meat, seafood, baked goods, and frozen foods, is part of its strategy to make inroads in the finance sector by challenging the market share of incumbent supermarket chains.
  2. As Amazon's same-day delivery of fresh groceries continues to grow, it has the potential to significantly impact the technology sector, as analysts view Amazon's improved convenience for grocery delivery as disruptive, potentially requiring traditional grocery retailers to reinvent their business models.
  3. The growth of Amazon's same-day delivery service for fresh groceries has implications for the lifestyle and food-and-drink industries, as its strategic move is expected to influence consumer behavior, particularly in terms of online shopping for perishable items.

Read also:

    Latest