Tag: same day delivery

Amazon is accelerating its expansion in the U.S. fresh food retail market, aiming to challenge Walmart, which has long held the top spot. In an earlier announcement, Amazon stated that it currently offers same-day delivery of fresh produce in over 1000 cities across the U.S., and plans to expand to over 2300 cities by the end of this year, with continued expansion expected in 2026. Doug Herrington, CEO of Amazon's Worldwide Stores, emphasized that Amazon continues to innovate to make grocery shopping "simpler, faster, and more affordable" for customers. Regarding shipping, Prime members enjoy free shipping on orders over $25 in most cities; orders below this amount incur a $2.99 ​​charge. Non-Prime members pay $12.99 per order. Currently, Amazon Prime membership costs $14.99 per month or $139 per year. This expansion signifies Amazon's renewed foray into the U.S. food retail market, long dominated by Walmart. According to data released by the Food Marketing Institute (FMI), U.S. consumers spend over $1 trillion annually on groceries at more than 45,000 supermarkets, with online sales currently accounting for less than 20%. Walmart, however, holds over 20% market share in this market, with food sales accounting for 60% of its total U.S. revenue, and has offered same-day delivery for many years. Following this announcement, several fresh food retailers and delivery companies in the U.S. experienced immediate stock price fluctuations. For example, Instacart's stock price plummeted by over 11%, Kroger's by over 4%, DoorDash's by nearly 4%, and Walmart's by nearly 3%. In contrast, Amazon's stock price rose by 1.39%, bringing its current market capitalization to $2.39 trillion. Amazon has been continuously exploring fresh food retail for years, including hiring former Tesco executive Tony Hoggett in 2022 to lead its online and brick-and-mortar retail restructuring. However, Tony Hoggett left the company at the end of 2024, and the business is now being taken over by Whole Foods Market CEO Jason Buechel. According to the latest financial report, Amazon's revenue for the second quarter of fiscal year 2025 reached $1677 billion, a year-on-year increase of 13%, while net profit was $181.64 billion, a 35% increase compared to the same period last year. Online store revenue grew by 10% to $614.85 billion, while brick-and-mortar store revenue grew by 7% to $55.95 billion.

Amazon has announced another upgrade to its e-commerce logistics services, planning to expand its "same-day delivery" and "next-day delivery" services to over 4000 small towns, towns, and remote communities by the end of 2026. This expansion is expected to connect tens of millions of potential users, further solidifying its dominant position in the U.S. e-commerce market. This expansion, targeting "everyday essentials," includes groceries, beauty products, cleaning supplies, and pet food. Prime members who spend $25 or more in a single order will enjoy free same-day delivery. Amazon stated that nearly 1000 towns are already included in this delivery program, with about 90% of the popular items falling into the daily necessities category, demonstrating the rapidly growing potential of this service in non-metropolitan areas. To support this logistics upgrade, Amazon has invested $4 billion to expand its warehousing facilities and hire more delivery drivers. It has also implemented an AI-powered predictive system to accurately assess popular local products. For example, in response to migratory birds, Amazon provides bird feed in Iowa to meet birdwatching demand; in Ohio, with its abundant outdoor attractions, it focuses on travel backpacks; and even in sunny Maryland, it offers after-sun care products. This reflects its localized supply strategy and tailored product offerings. On the other hand, Amazon is transforming its original distribution centers into "hybrid logistics hubs," allowing goods to reach recipients faster, thereby shortening delivery times and improving overall efficiency. This measure is expected to put considerable pressure on local brick-and-mortar retailers. While Amazon emphasizes that this adjustment will help more small and medium-sized enterprises expand their sales opportunities, some believe it will squeeze the survival space of local businesses, especially given rising rents and operating costs. Same-day delivery services offered by large e-commerce platforms like Amazon will attract more people to order daily necessities online, thus reducing the proportion of purchases made through physical stores.

In anticipation of its Prime Day promotion, Amazon announced a service that will allow Prime members in the U.S. to order groceries and receive the same-day delivery. It has also begun testing robotically automated grocery stores across the country and will expand its same-day delivery service for prescription medications to more cities. The same-day delivery service will initially be available in Phoenix, Arizona, allowing customers to combine their groceries and other purchases in the same order for delivery to their designated address on the same day or at the latest the following day. After gaining experience in Phoenix, Amazon expects to expand the service to more cities across the U.S. Additionally, Amazon is expanding its grocery delivery service and is testing its Whole Foods Market service in Plymouth Convention Center, near Philadelphia, Pennsylvania. This service allows customers to order groceries and other items via their mobile phones, with robots automatically preparing the goods for faster shopping. This service is expected to launch in 2025. Regarding the update to its same-day delivery service for prescription medications, Amazon announced that it will offer this service in more than 20 cities and regions across the United States by 2025, allowing more users in the US to order prescription medications through this service. Currently, the service is available in cities such as Miami, Phoenix, and Seattle, and is expected to expand to more than a dozen major cities and regions across the US, including Boston, Dallas, Minneapolis, and Philadelphia, by 2025. This service will be offered free to Prime members; if the medication is ordered before 4 p.m., it will be received before 10 p.m. on the same day. In addition to providing prescription medication delivery, Amazon has previously launched the Amazon Clinic online medical clinic service in the United States through its original online pharmacy service, Amazon Pharmacy, and the resources of One Medical, which it later acquired, thereby expanding its presence in the healthcare services market.