Amazon Expands Grocery Delivery Service for Prime Members
NEW YORK — Amazon has launched a fresh grocery delivery service for its Prime members, enabling them to order items like blueberries and milk alongside everyday goods such as batteries and T-shirts for same-day delivery in over 1,000 cities, including Boston and Raleigh. This significant expansion aims to introduce thousands of perishable items into Amazon’s logistics network by year-end, targeting over 2,300 locations.
Following the announcement, Amazon’s shares increased by 1%, while competitor stocks from Walmart, Kroger, and Target experienced declines. Prime members can enjoy free same-day delivery on orders exceeding $25; orders below this threshold incur a $2.99 fee. Non-members can opt for same-day delivery at a $12.99 fee regardless of order size.
Doug Herrington, CEO of Worldwide Amazon Stores, emphasized the company’s commitment to making grocery shopping more convenient and affordable. The service was first tested in Phoenix and has since expanded to additional locations. Early data shows that first-time grocery shoppers are returning to buy twice as often, with items like strawberries and bananas quickly becoming top sellers.
With strategic investments aimed at enhancing its delivery network, Amazon generated over $100 billion in grocery sales last year, not including Whole Foods and Amazon Fresh.
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