Amazon Expands Grocery Delivery to 1,000+ Cities, Boosting Stock and Investor Confidence
August 13, 2025
The company uses temperature-controlled networks and insulated, recyclable bags to ensure the freshness and quality of perishable items during delivery.
Amazon has expanded its grocery delivery service to over 1,000 cities and towns, with plans to reach more than 2,300 by the end of 2025, offering Prime members same-day delivery on orders over $25.
Many new grocery customers are returning shoppers, with top-selling items including strawberries and bananas, indicating strong consumer interest.
This expansion aims to make Amazon more competitive in the perishables market, addressing previous challenges with fresh food sales and customer confusion over shopping carts.
Following the announcement, Amazon's shares increased by 1% to 2%, reflecting investor confidence, especially as broader market sentiment remains positive.
The recent rise in Amazon's stock is also supported by a crypto deal involving Blue Origin, which now accepts cryptocurrencies for space flight purchases, adding to investor optimism.
Amazon leverages retail media networks to monetize ad space, helping offset delivery costs and support its low-margin, infrastructure-heavy strategy.
A $4 billion investment in logistics infrastructure, including temperature-controlled centers and AI-driven inventory management, enables Amazon to deliver fresh produce efficiently, emphasizing quality and convenience.
Amazon's growth is driven by a 7% year-over-year increase in July e-commerce spending, fueled by Prime Day and investments in future technologies like quantum computing.
This grocery expansion is part of Amazon's broader logistics development to support faster, more efficient delivery services.
Artificial intelligence is used to predict local preferences and optimize inventory stocking for different communities, enhancing the shopping experience.
Amazon initially trialed its grocery delivery service in Phoenix last year and has since scaled it up, integrating grocery and non-grocery items into a seamless order process.
Summary based on 35 sources
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Sources

TechCrunch • Aug 13, 2025
Amazon rolls out same-day delivery of perishable groceries in 1,000 US cities
CNN • Aug 13, 2025
Amazon just made it easier to order fresh food
Quartz • Aug 13, 2025
Amazon expands big into groceries with same-day perishables delivery in 1,000 cities