Amazon shoppers who want to snag same-day groceries, electronics and other items in a single order will now have the chance, thanks to the company’s recently launched grocery delivery program.
The company launched the program in at least 1,000 cities and towns, including Raleigh, North Carolina; Milwaukee, Wisconsin; Columbus, Ohio; and Tampa, Florida, according to a news release. Other cities include areas in Los Angeles, California; Seattle, Washington; Dallas, Texas; and Nashville, Tennessee, the company told USA TODAY on Wednesday, Aug. 13.
The company has plans to expand it to over 2,300 areas in the U.S. by the end of 2025, the press release read.
Amazon says Prime members receive free same-day delivery on orders over $25, while customers without a Prime membership must pay a fee.
The company emphasized in the release that the new service is not a replacement for Amazon’s current grocery delivery services, such as Amazon Fresh, Whole Foods Market and other local grocery programs on Amazon’s website. The new service is supposed to complement those programs, Amazon said.
What can I have delivered?
Customers can now include perishable grocery items, such as produce, dairy, meat, seafood, baked goods and frozen foods in the same order as electronics, books, tools and other items normally sold via Amazon.
How much will Amazon’s grocery program cost me?
While Prime members get free same-day grocery delivery for orders over $25, customers without a Prime membership must pay a $12.99 fee (no matter what the order size is).
Customers can still place an order even if their items don’t total $25, but a $2.99 fee will be added, Amazon said.
How does same-day grocery delivery work?
Amazon has a specialized temperature-controlled fulfillment network, allowing the company to deliver groceries, according to the release.
Items undergo a six-point quality check before leaving Amazon’s facilities for delivery. Carriers keep temperature-sensitive products in insulated bags that are recyclable in most curbside recycling programs, the company said, adding that these are the same bags used for Amazon Fresh and Whole Foods Market deliveries.
Amazon said those wanting to see the available options in their area can visit the Same-Day Store.
How did Amazon’s same-day grocery delivery originate?
According to Amazon, the company’s gross sales last year totaled over $100 billion among over 150 million American shoppers.
The company initially began adding perishable groceries, such as bananas, milk, eggs and bread, to its same-day delivery service in areas such as Phoenix, Orlando and Kansas City. Customers utilized the service heavily, according to Amazon.
”Strawberries, Honeycrisp apples, limes and avocados now rank among the top 10 items in Same-Day Delivery carts,” Amazon wrote in the release.
The company expects to launch its same-day grocery delivery service in 2,300 cities and towns by the end of the year, and there are plans to expand in 2026.
Will this impact InstaCart, DoorDash and Walmart+?
Evercore ISI, a research department within independent investment bank Evercore, released a report about Amazon’s recent changes. In the report, researchers called the program “a significant strategic move.”
The researchers stated that by allowing customers to purchase groceries in one single order, alongside items such as clothing, electronics and other household products, Amazon has increased its chances of competing with grocery delivery services that customers turn to, like Instacart and Walmart+.
According to the researchers, the $25 minimum for free delivery also makes the move attractive to customers because of the convenience and low cost, making it harder for other delivery services to keep customers’ attention.
One company in particular, InstaCart, may be pressured to lower fees or increase promotions, Evercore ISI researchers said.
Amazon said the new program will give customers access to thousands of grocery items they can have delivered the same day.
“Amazon is always looking for ways to make grocery shopping simpler, faster and more affordable for our customers, especially Prime members,” Amazon said in its release. “This new service makes grocery shopping a quick and easy experience.”
Saleen Martin is a reporter on USA TODAY’s NOW team. She is from Norfolk, Virginia – the 757. Email her at sdmartin@usatoday.com.
This article originally appeared on USA TODAY: What to know about Amazon’s new same-day grocery delivery program
