Amazon is expanding same-day grocery delivery to 1,000 cities, aiming for 2,300 by 2025. JPMorgan sees this as key to Amazon’s e-commerce growth, with groceries accounting for 43% of US sales, only 15% online. The move caused share dips for Walmart, Costco, and others, but Amazon stock rose.

JPMorgan predicts Amazon’s grocery push will solidify its e-commerce lead, boosting Prime appeal and ad revenue. The company’s cost-cutting measures and scale advantages could drive profitable grocery sales growth. More grocery customers mean more ad opportunities, with Q2 advertising revenue up 22% year over year.

Evercore suggests Amazon’s move may prompt competitors like Kroger and Albertsons to rethink delivery fees. Delivery players like DoorDash and Instacart’s parent, Maplebear, saw stock drops after Amazon’s announcement, while Amazon’s stock gained 3.5%. Amazon’s grocery business exceeded $100 billion last year.

Read more at Yahoo Finance: Amazon could seize market share and drive down fees with its latest grocery bet