Amazon is ramping up its fresh grocery game, now offering same-day delivery for perishable items in over 1,000 U.S. cities and towns, and they plan to more than double that reach to over 2,300 locations by the end of 2025.
For last-mile delivery drivers, this expansion means more routes that include temperature-controlled items like produce, dairy, meat, seafood, bakery goods, and frozen foods. And it’s not just groceries — customers can mix these orders with non-perishables like electronics, clothing, and home essentials, all for delivery within hours.
To keep perishables in top condition, Amazon uses refrigerated storage in its warehouses and packs items in insulated bags before they go out for delivery.
Why This Matters for Drivers
Early testing in cities like Phoenix, Orlando, and Kansas City showed that customers who order fresh groceries with same-day service shop almost twice as often as those who stick to non-perishables. This means more frequent and varied delivery runs for drivers as Amazon expands into new markets like Raleigh, Milwaukee, Tampa, and Columbus.
Pricing for Customers
Prime members get free same-day delivery on orders over $25 in most cities. Smaller orders come with a $2.99 fee, while non-Prime customers pay $12.99 per order.
“We’re continuously innovating to make grocery shopping simpler, faster, and more affordable for our customers, especially Prime members,” said Doug Herrington, CEO of Worldwide Amazon Stores. “By introducing fresh groceries into our Same-Day Delivery service, we’re creating a quick and easy experience for customers. They can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project — and check out with one cart and have everything delivered to their doorstep within hours.”
Bigger Market, Bigger Opportunity
In 2024, Amazon logged more than $100 billion in gross sales of groceries and household essentials, not counting Whole Foods or Amazon Fresh store revenue. Analysts say this fresh grocery expansion shows Amazon has nailed its delivery model, opening the door for even more growth without sacrificing profit margins.
With online grocery still only making up 13.4% of the $941 billion grocery market, there’s a lot of room to grow. Bank of America estimates the delivery segment could be worth $90 billion.
As analyst Juston Post noted: “Fresh grocery has been a significant missing piece in Amazon’s offering vs. competitors, such as Walmart and Target. With better grocery capabilities, Amazon should see important customer frequency benefits and potential lock-in with weekly grocery shopping, not achievable in other verticals. We expect Amazon to refine and improve its grocery selection over time.”
For last-mile drivers, that translates to more demand, more deliveries, and more opportunities in one of the fastest-growing areas of e-commerce logistics.
Source: Freightwaves
Image Source: Bloom Berg
