Amazon Expands Same-Day Delivery
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The e-commerce giant announced on Wednesday that same-day delivery for perishable grocery items, including meat and seafood, is now available in more than 1,000 cities, including Phoenix, Orlando, Raleigh, and Milwaukee. It plans to expand the service even further to over 2,300 U.S. cities by the end of the year and even more towns in 2026.
Amazon (AMZN) rose on Thurs. due to expansion of same-day grocery delivery to 3,500+ cities, generating over $100B in groceries sales in 2024.
Amazon is rolling out same-day delivery of fresh food to more than 1,000 cities, a sign that it’s finally finding success with its grocery business after years of shifting strategies. In a move that Amazon describes in a press release as one of its “most significant grocery expansions,
“We’re seeing strong customer adoption as 75% of customers who’ve used the service this year are first time shoppers for perishables on Amazon, with 20% of customers who use the service returning multiple times within their first month," commented CEO Andy Jassy during the company’s second-quarter earnings call.
Kroger (NYSE: KR) stock fell 3% Wednesday morning after Amazon (NASDAQ: AMZN) announced a significant expansion of its grocery delivery service, potentially threatening traditional supermarket chains.