Amazon Prime subscribers can now get perishable foods via same-day delivery services from the brand.
Amazon said it has plans to expand to over 2,300 cities across the United States by year-end. The company announced in June it is investing $4 billion to bring same-day and next-day delivery services to more than 4,000 rural U.S. communities by the end of the year.
“This marks one of the most significant grocery expansions for Amazon as the company introduces thousands of perishable food items into its existing logistics network that is already optimized for speed and efficiency. Customers will have the option to order produce, dairy, meat, seafood, baked goods and frozen foods, alongside the millions of items such as everyday household essentials, electronics, fashion, home and garden, and more already available for same-day delivery on Amazon.com,” the company said.
It is the latest move by Amazon to compete with delivery services offered by Walmart+ and Instacart, wrote Reuters.
“The new same-day delivery service is free for Prime members, who pay $14.99 monthly or $139 annually, for orders over $25. Shoppers without a Prime membership have to pay a $12.99 fee, regardless of order size, to use the new service. Walmart's membership service, Walmart+, costs $98 a year and offers same-day delivery in under three hours—with some orders arriving in as little as 30 minutes,” Reuters wrote.
In May, Walmart said it would soon be able to offer delivery within three hours to 95% of the U.S. population, and that faster delivery speeds are helping drive its business, per Reuters.
Earlier this week, NACS Daily reported that the Federal Aviation Administration (FAA) proposed a new rule that would allow companies to fly drones outside of an operator’s line of sight and therefore over longer distances, making it easier for them to offer more drone deliveries.
Walmart works with the drone company Wing to provide drone deliveries from 18 Walmart stores in the Dallas area. Walmart said the top items from the more than 150,000 drone deliveries it has completed since 2021 include ice cream, eggs and Reese’s Peanut Butter Cups.
Amazon has its own drone delivery system called “Prime Air”.