Amazon Extends Fresh Food Same-Day Service To 1,000 Cities, Driving Major Grocery Market Competition

Amazon will expand same-day delivery of fresh foods to more than 1,000 U.S. cities and towns, according to CNBC. Amazon will expand its fresh food same-day delivery service to over 1,000 U.S. cities and towns now, with a goal of reaching 2,300 locations by year-end. Amazon tested the service in Phoenix and other cities, finding shoppers often added fresh produce and perishables to their orders. The company said shoppers who used the service returned to shop twice as often as those who did not, and many were first-time Amazon grocery customers. Shares of Instacart fell 11% after the announcement, while Kroger, Albertsons, DoorDash, and Walmart also declined. Analysts said the move escalates competition between Amazon and Walmart in grocery and rural markets.