By Katherine Hamilton
Amazon's move to expand its same-day grocery delivery service sent shares of rival grocery-delivery companies lower.
The e-commerce conglomerate said Wednesday it would now offer same-day delivery of groceries to 2,300 cities and towns, more than doubling its existing footprint.
While Amazon's stock rose 1.3% to $230.79, its competitors slid. Shares of Instacart's owner Maplebear retreated 6.9%, Uber Technologies declined 6% and DoorDash slipped 4.5%. Kroger's stock was down 2%.
Amazon launched its same-day grocery service in August, starting with 1,000 cities. The company said it has additional growth plans for the program in 2026.
The company is aiming to take a bigger slice of the grocery delivery industry. The service, which started to skyrocket during the pandemic, is one of the few areas where the e-commerce conglomerate has failed to gain a dominant position.
Walmart, which is the biggest grocer in the U.S., continues to edge out Amazon as the most popular place to order groceries for delivery. Walmart was projected to make up about 32% of U.S. grocery e-commerce sales this year, while Amazon was expected to comprise 23% of sales and Kroger 8.6%, according to eMarketer.
Walmart's stock was down less than 1% on Wednesday.
Grocery delivery intermediaries such as DoorDash and Instacart are aiming to maintain market share from retailers like Walmart and Amazon that offer delivery directly through their platforms. Nearly three-quarters of all U.S. digital grocery sales come directly from retailer sites, per eMarketer.
Much of Amazon's grocery sales have come from non-perishable goods such as toothpaste and canned goods, but interest in perishable goods is increasing as the company boosts its same-day grocery service.
Since its start in August, Amazon has grown its offerings of perishable goods by more than 30%, the company said. In areas where same-day groceries are available, nine of the top 10 bestselling items are now perishables, it said.
Customers who add fresh groceries to their same-day delivery orders shop about twice as often as those who don't, Amazon said.
In 2024, Amazon generated more than $100 billion in gross sales of groceries and household essentials, not including sales from Whole Foods Market and Amazon Fresh.
Chief Executive Andrew Jassy said during a call with analysts in October that he believes consumers are changing the way they grocery shop, and are shifting away from the traditional weekly stock-up. The same-day delivery service makes sense for many people who are making that shift, he said.
"It's really changing the trajectory and the size of our grocery business," Jassy said.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 10, 2025 12:59 ET (17:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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