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Amazon’s same-day grocery delivery serves as magnet for parcel business
Yahoo Finance· 2025-12-15 17:14
Core Insights - Amazon has successfully expanded its same-day delivery of fresh groceries to 2,300 cities and towns, more than doubling its previous reach [1][2] - The service has led to a 30% increase in the selection of perishable goods available, primarily sourced from Whole Foods Market [3] - Perishable grocery sales have surged 30 times since January, indicating strong customer demand for the convenience of same-day delivery [5] Delivery Expansion - The same-day grocery delivery service has grown from 1,000 communities to 2,300 areas in just four months [2] - New locations include cities such as Boise, Idaho, and Salt Lake City, among others [2] - Improvements in Amazon's temperature-controlled delivery network and last-mile delivery partnerships have facilitated this expansion [3] Customer Engagement - Prime members can order a variety of fresh and dry goods with same-day delivery for free on orders over $25, while non-Prime customers pay a fee [4] - Customers who add fresh groceries to their same-day delivery orders tend to shop about twice as often as those who do not [5] Competitive Landscape - Amazon's investments in grocery delivery are aimed at competing with traditional grocery stores and services like Instacart [6] - The company is testing 30-minute delivery options in Philadelphia and Seattle to further enhance its service [6] - Analysts suggest that Amazon's grocery expansion could impact parcel carriers like FedEx and UPS, as customers may increasingly rely on Amazon for both grocery and non-grocery items [7]