Amazon Brings Fresh Groceries to Your Door in 1,000 Cities - With 2,300 More Coming

Strawberries are outselling AirPods on Amazon. That's right - the e-commerce giant known for electronics and books is now delivering fresh produce, meat, and dairy alongside your usual Prime orders in over 1,000 cities across America.

The company announced what it calls "one of the most significant grocery expansions" in its history, rolling out same-day delivery of perishable groceries to communities nationwide. By the end of 2026, Amazon plans to bring the service to more than 2,300 areas, fundamentally changing how millions of Americans shop for food.

Here's how it works: Prime members can now add fresh groceries to the same cart as their household essentials, electronics, and fashion items. Orders over $25 ship free the same day. Don't have Prime? You'll pay $12.99 per order, regardless of size.

The move sent shockwaves through the grocery industry. Instacart shares plummeted more than 11% on the news, while DoorDash and Kroger each dropped about 4%. Walmart's stock fell 2.5%.

CEO Andy Jassy revealed compelling numbers during the company's second quarter earnings call: "75% of customers who used the service this year are first time shoppers for perishables on Amazon, with 20% of customers who use the service returning multiple times within their first month."

The pilot programs in Phoenix, Orlando, and Kansas City proved customers were ready. Honeycrisp apples, limes, and avocados ranked among the top 10 items in same-day delivery carts. Amazon now offers thousands of fresh grocery items, from produce and dairy to seafood and frozen foods.

But not everyone's convinced Amazon can dominate groceries like it has other sectors. "Without a big store base, it's hard to win, as most shoppers still buy in person, and proximity is key to delivering perishables efficiently to customers," wrote Arun Sundaram, senior vice president at CFRA Research.

Amazon's addressing quality concerns with a specialized temperature-controlled fulfillment network. Every item undergoes a six-point quality check, and temperature-sensitive products arrive in recyclable insulated bags.

The service complements Amazon's existing grocery offerings - Amazon Fresh stores, Whole Foods Market, and various local retailers on Amazon.com. The company already generates over $100 billion annually from groceries and household essentials, not including Whole Foods and Amazon Fresh revenue.

Tom Furphy, former vice president of Amazon Fresh, predicts significant disruption: "Make no mistake, this will take share from incumbent retailers." Whether shoppers will embrace mixing strawberries with smartphones in their carts remains the billion-dollar question.

by Alex Bailey | August 28, 2025 | SHARE