Amazon Expands Same-Day Grocery Delivery to Steer Competition

Group 1 - Amazon's strategic expansion of its same-day grocery delivery service to over 1,000 cities is aimed at dominating the $1.6 trillion U.S. grocery market, with plans to reach 2,300 cities by year-end [1][8] - The company achieved $100 billion in gross grocery and household essential sales in 2024, leveraging competitive pricing and free delivery for Prime members on orders over $25 [2] - Amazon's investment in temperature-controlled fulfillment networks and quality checks enhances the value of Prime membership and supports customer acquisition and retention [3] Group 2 - Walmart offers same-day delivery from approximately 4,700 stores through its Walmart+ membership, maintaining a competitive edge with its extensive physical infrastructure [4] - Target, through its Shipt acquisition, provides same-day delivery from nearly all its 2,000 stores, integrating grocery with general merchandise [5] - Kroger partners with delivery platforms and invests in automated fulfillment centers, though its geographic reach for same-day delivery is more limited compared to Amazon [6] Group 3 - As Amazon expands to 2,300 cities, Walmart's established presence poses immediate competition, while Kroger and Target need to accelerate digital investments to stay relevant [7]