Amazon is rewriting the playbook for grocery delivery. The company’s new push to add fresh groceries to its same-day delivery service in select markets, where Prime members can already buy non-perishables and all kinds of other items, is no experiment. It’s a calculated bet on logistics that enables customers to order eggs and baked goods at the same time as T-shirts and picture frames and get everything delivered together. By further enhancing its same-day fulfillment hubs, the e-commerce and cloud giant is aiming to narrow the gap with traditional grocers while setting a new standard for convenience. “Our north star here is we want to continue to make grocery shopping easier, faster, and more affordable for our customers,” said Jason Buechel, CEO of Amazon-owned Whole Foods Market. “Now, under one roof, you have the opportunity for customers to get all the things they’ve always been purchasing from our same-day facilities and adding perishable groceries to that as well,” Buechel told CNBC in an interview. He is also vice president of the company’s worldwide grocery stores, which also include the Amazon Fresh and Amazon Go brands. What’s at stake Amazon announced on Aug. 13 that Prime members in more than 1,000 cities and towns can now get free delivery on perishable groceries and any other items available for same-day delivery. Orders under the $25 minimum would incur a $2.99 fee. Amazon plans to expand to 2,300 markets by year-end, with further expansion slated for 2026. If available in your area, the new options will be served automatically to Prime members who are logged into Amazon’s website. This enhanced service is different from the fresh food and grocery items already available from Whole Foods Market and other partners. The existing service fills orders at local stores that are then picked up and delivered by local drivers. That model is not going away. But some of that ordering, particularly smaller orders, could shift the new paradigm of fresh foods warehoused at same-day delivery fulfillment centers According to Buechel, Amazon’s ability to roll out the new service at scale comes from expanding and retrofitting its existing same-day facilities or smaller, specialized sites designed to pick, pack, and sort in-demand items for rapid delivery to customers within a short driving radius. “What we’ve done is extend upon our already existing infrastructure … adding in some specialized capabilities that will allow us to support perishable groceries,” Buechel said. Those capabilities include creating a temperature-controlled environment to support product freshness of perishable groceries. Buechel also highlighted “specialized training programs for our employees that are helping them support the cold-chain processes required in a perishable environment.” On the day of the announcement, Amazon stock rose more than 1% while delivery competitors like Instacart and DoorDash dropped 12.4% and 4.8%, respectively. Walmart , which has a major…
Read More: The rewards and risks of Amazon’s push to add fresh groceries to same-day