Amazon is significantly expanding its grocery delivery footprint, allowing Prime members to order fresh produce, dairy products, and other perishable foods alongside everyday household items in a single transaction.
The company announced Wednesday that more than 1,000 cities and towns across the United States now have access to free same-day delivery for fresh groceries on Prime orders over $25. Amazon expects that number to more than double, reaching over 2,300 locations, by the end of 2025.
The rollout integrates thousands of fresh grocery items into Amazon’s existing delivery network, marking one of the retailer’s most ambitious moves in the grocery space since acquiring Whole Foods Market in 2017. Analysts say the expansion intensifies competition with established grocers like Walmart, Kroger, and Target, whose stocks dipped early Wednesday following the announcement.
While Amazon’s own shares rose by 1%, the company emphasized flexibility in its pricing model. Prime members whose orders fall below the $25 threshold can still opt for same-day delivery for $2.99, while non-Prime customers can access the service for $12.99 per order.
Doug Herrington, CEO of Worldwide Amazon Stores, said the goal is to make grocery shopping “simpler, faster, and more affordable,” especially for Prime subscribers. He noted that customers could now “order milk alongside electronics, oranges with a mystery novel, or frozen pizza with home improvement tools, and receive it all in one cart, delivered within hours.”
Previously, Amazon fulfilled grocery orders for Prime members primarily through Amazon Fresh or Whole Foods. The company reports that last year, it generated over $100 billion in gross sales of groceries and household essentials, excluding Whole Foods and Amazon Fresh figures.
In June, Amazon unveiled plans to invest over $4 billion into tripling its delivery network by 2026, with a focus on extending services to rural and small-town communities. The company also highlighted its growing use of artificial intelligence to predict shopping patterns in different regions, enabling it to stock items that reflect both local preferences and nationwide demand.
