Amazon Takes On Walmart: Expands Grocery Delivery to 1,000 Cities!

Amazon has just announced a major enhancement to its grocery delivery service. The company is now offering same-day grocery delivery in 1,000 U.S. cities. This move is aimed at challenging Walmart’s dominance in online grocery sales.

Previously, Amazon tested this service in cities like Phoenix, Orlando, and Kansas City. Now, it has broadened the offering to more areas and plans to reach 2,300 cities by 2025. This step is part of a larger strategy, as Amazon seeks to capture a share of the $800 billion grocery market.

For Amazon Prime members, same-day delivery is free for orders over $25. If the order does not meet this threshold, there’s a small fee of $2.99. Non-Prime members have a flat delivery fee of $12.99.

Walmart currently leads the market with a same-day delivery reach of 93% of U.S. households. According to a report from eMarketer, Walmart is still the top online retailer in grocery sales. Blake Droesch, an analyst, noted that shoppers at Walmart typically do more comprehensive grocery shopping, while Amazon customers tend to make smaller, one-off purchases.

Interestingly, Amazon’s grocery aspirations go back to 2006, when it began offering groceries online. In 2007, it introduced Amazon Fresh. Since then, the company has evolved, opening physical stores and incorporating innovative technology to enhance the shopping experience. As of now, there are 63 Amazon Fresh stores across the country.

Recent data show that last year, Amazon reported over $100 billion in grocery sales, excluding Whole Foods. Moreover, more than 2 billion grocery items were delivered the same or next day in the U.S. in 2024.

As Amazon pushes into the grocery space, it’s also worth noting the competition from services like Uber and DoorDash. However, eMarketer estimates that nearly 72% of digital grocery sales will still come from major retailers like Walmart and Amazon.

At the end of the day, Amazon’s entry into same-day grocery delivery marks a significant shift in how consumers shop for food. As the landscape continues to change, it will be fascinating to see how companies adapt to meet growing demand. For more detailed insights on the grocery market, check out eMarketer’s recent reports.



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Walmart, Amazon, Amazon Fresh, grocery delivery, grocery business, Amazon CEO