Amazon expands same-day grocery delivery to over 1,000 cities

SEATTLE - Amazon (NASDAQ:AMZN), the $2.36 trillion market cap retail giant with a "GOOD" financial health rating according to InvestingPro, has expanded its same-day delivery service to include fresh groceries in more than 1,000 cities and towns across the United States, with plans to reach over 2,300 locations by the end of 2025, the e-commerce giant announced Wednesday.

The expansion allows customers to order perishable items such as produce, meat, seafood, dairy, baked goods, and frozen foods alongside millions of other products already available through Amazon’s same-day delivery service.

Prime members receive free same-day delivery on orders over $25 in most cities, while non-Prime customers can access the service for a $12.99 fee regardless of order size.

"By introducing fresh groceries into our Same-Day Delivery service, we’re creating a quick and easy experience for customers," said Doug Herrington, CEO of Worldwide Amazon Stores, in a press release statement.

The company’s specialized temperature-controlled fulfillment network ensures quality control, with each item undergoing a six-point quality check. Temperature-sensitive products are delivered in recyclable insulated bags to maintain appropriate temperatures.

According to Amazon, early adoption data shows that customers who purchase fresh food through the service shop twice as often compared to those who don’t. Popular items include strawberries, bananas, Honeycrisp apples, limes, and avocados.

The service complements Amazon’s existing grocery delivery options, including Amazon Fresh and Whole Foods Market. Amazon reported generating over $100 billion in gross sales of groceries and household essentials in 2024, not including sales from Whole Foods Market and Amazon Fresh. This grocery expansion builds on Amazon’s impressive overall revenue of $670 billion in the last twelve months, with a healthy growth rate of nearly 11%.

The company plans to continue expanding this capability through 2026. With 20 analysts recently revising their earnings estimates upward and the company trading near its InvestingPro Fair Value, investors seeking deeper insights into Amazon’s growth strategy can access comprehensive analysis and over 30 additional financial metrics through InvestingPro’s detailed research reports.

In other recent news, Amazon.com reported robust financial results for the second quarter of fiscal year 2025, surpassing both market expectations and its own guidance across all segments, with significant improvements in retail efficiency. In a related development, Freedom Broker adjusted its price target for Amazon to $255, maintaining a Hold rating based on these results. Amazon Web Services (AWS) has committed up to $1 billion in cloud discounts to U.S. government agencies, aiming to facilitate IT transformation and AI innovation through 2028, as per the U.S. General Services Administration. Additionally, AWS announced the launch of Amazon Elastic VMware Service, which allows customers to migrate VMware workloads to the AWS cloud without re-platforming. Meanwhile, BofA Securities reiterated its Buy rating and set a $272 price target on Amazon following the introduction of OpenAI’s new models available on AWS platforms. Furthermore, Anthropic, backed by Amazon, has offered its Claude AI model to the U.S. government for just $1, joining other AI vendors on the approved list. These developments reflect Amazon’s ongoing efforts to expand its cloud services and AI capabilities while strengthening its position in the government sector.

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