Amazon has expanded same-day grocery delivery to 2,300 cities and towns, offering a 30% larger selection of perishable goods primarily sourced from Whole Foods Market. Users can combine groceries with regular merchandise for convenience. The service is popular, with 30 times more perishable grocery sales since January.

The expansion is made possible by improvements to Amazon’s delivery network, last-mile partnerships, and increased selection. Prime members can order fresh groceries alongside other products for free same-day delivery on orders over $25. Non-members pay a $12.99 fee for the service.

Analysts see Amazon’s grocery delivery investment as a way to compete with fewer stores, maintain profit margins, and challenge competitors like Instacart. The company is also testing 30-minute delivery in Philadelphia and Seattle, potentially impacting traditional parcel carriers like FedEx and UPS.

Amazon’s recent $4 billion investment aims to expand its rural parcel delivery network by 2026. Integration with grocery delivery could lower rural delivery costs, further pressuring traditional carriers. The company’s grocery expansion poses a threat to other retailers like Walmart and Target, potentially making Amazon a third-party parcel carrier.

Read more at Yahoo Finance: Amazon’s same-day grocery delivery serves as magnet for parcel business