Amazon broadens its fresh food delivery service, intensifying competition for conventional supermarkets
Amazon is ramping up its fresh grocery delivery service, aiming to reach over 2,300 cities and towns across the United States by the end of 2025. This expansion marks one of Amazon's most significant moves into fresh grocery delivery, targeting new customers who previously did not shop for perishables on the platform.
As of August 2025, customers in over 1,000 cities and towns can order thousands of fresh grocery items, including produce, dairy, meat, seafood, baked goods, and frozen foods, alongside millions of other Amazon products. The service, available to Prime members, offers free Same-Day Delivery on orders over $25, with a $2.99 fee for orders below the minimum. Non-Prime customers can also access the service for a $12.99 delivery fee, regardless of order size.
The expansion complements existing grocery delivery offerings through Amazon Fresh and Whole Foods Market, leveraging a specialized temperature-controlled fulfillment network that ensures the quality and freshness of perishable items during delivery.
Key features of the service include the ability to order perishables and non-grocery items like electronics or household essentials in the same transaction and receive them the same day. Delivery uses insulated, recyclable bags to maintain temperature-sensitive conditions during transit.
Amazon first tested its same-day delivery service for groceries in Phoenix last year and added Orlando, Florida, and Kansas City, Missouri, earlier this year. The expansion includes cities like Raleigh, North Carolina; Milwaukee; and Columbus, Ohio.
In June, Amazon announced it would be focusing on investing in its delivery network, particularly in small towns and rural communities. The company is investing more than $4 billion to triple the size of its delivery network by 2026, with a focus on small towns and rural communities across the country.
This move is expected to greatly improve the experience for Amazon customers in terms of ordering fresh food, according to Jason Goldberg, chief commerce strategy officer at Publicis Groupe. The expansion puts pressure on grocery delivery services offered by rivals like Walmart, Kroger, and Target.
In the past, Prime members' grocery orders were fulfilled through Amazon Fresh or Whole Foods Market. However, the integration of fresh groceries into the broader same-day product offerings aims to make grocery shopping simpler, faster, and more affordable for Prime members.
Interestingly, strawberries now regularly knock AirPods out of the top five best sellers of all products sold, while bananas, Honeycrisp apples, limes, and avocados round out the top ten best-selling perishable grocery items in Amazon's same-day delivery carts. This shift in consumer behaviour suggests that the expansion is attracting new customers and increasing frequency of purchases among existing ones.
Prime members pay $14.99 monthly or $139 annually for the service, while non-Prime members can access the service for a $12.99 fee, regardless of order size.
Sources: 1. Amazon Fresh 2. Amazon Same-Day Delivery 3. CNBC 4. TechCrunch 5. GeekWire
- Seattle, where Amazon is headquartered, will see an expansion of Amazon's fresh grocery delivery service, as the company aims to reach over 2,300 cities and towns across the United States by the end of 2025.
- The real estate industry may be influenced by Amazon's expansion, as the company is investing more than $4 billion to triple the size of its delivery network by 2026, with a focus on small towns and rural communities.
- Amazon's new service allows customers to order fresh groceries like produce, dairy, meat, seafood, baked goods, and frozen foods alongside millions of other Amazon products, all for delivery the same day.
- The technology sector is also affected, as Amazon employs a specialized temperature-controlled fulfillment network and insulated, recyclable bags to maintain the quality and freshness of perishable items during delivery.
