Amazon's grocery could be a trojan horse to move revenue higher, says Evercore ISI's Mark Mahaney

Market Competition & Strategy - Amazon is positioning itself more aggressively against competitors like Walmart, Instacart, and DoorDash [1] - Amazon's same-day delivery service provides a cross-sell opportunity, potentially increasing grocery sales [3][4] - Amazon's strategy involves leveraging its existing Prime membership base to drive grocery purchases [6][7] Amazon's Grocery Business - Amazon's grocery and household essentials business reached approximately $100 billion last year [2] - Amazon currently holds about 5% of the grocery market share, indicating significant growth potential [5] - Household essential categories are growing two times faster than the rest of Amazon's business [9] Consumer Behavior & Trends - A significant portion (three quarters) of those who ordered perishable goods from Amazon this past year were new customers [6] - Same-day delivery acts as a "force multiplier," increasing household spending and purchase frequency on Amazon [8][9] - The convenience of adding groceries to existing same-day deliveries may trigger increased adoption among Prime members [8]