Amazon Expands Grocery Delivery, Pressuring Rivals

Amazon is now rolling out a service where its Prime members can order their blueberries and milk at the same time as basic items like batteries and T-shirts and get them within hours. The online juggernaut said Wednesday that customers in more than 1,000 cities and towns now have access to fresh groceries with its free same-day delivery service on orders over $25 for Prime members, with plans to reach over 2,300 cities and towns by year-end, per the AP.

• Amazon called the move "one of the most significant grocery expansions" for the online retailer as it introduces thousands of perishable items into its existing logistics network. The expansion is expected to put pressure on grocery delivery services offered by such rivals as Walmart, Kroger, and Target, which all saw their shares take a hit in trading Wednesday. Amazon's shares rose 1%.

• Amazon said that if an order doesn't meet the minimum, members can still choose same-day delivery for a $2.99 fee. For customers without a Prime membership, the service is available with a $12.99 fee, regardless of order size.
• In the past, Prime subscribers' grocery orders were fulfilled through Amazon Fresh or Whole Foods Market.
• Prime members pay $14.99 monthly or $139 annually.
• Cities served include Raleigh, North Carolina; Milwaukee; and Columbus, Ohio. The company has more details here.