Amazon Expands Same-Day Grocery Delivery to 1,000 Cities

Amazon (AMZN, Financials) is expanding its same-day grocery delivery service to more than 1,000 U.S. cities, with plans to reach 2,300 by year-end. The rollout follows pilot programs in Phoenix and other test markets where customers frequently added produce, meat and dairy to their orders.

The service is free for Prime members on orders over $25; otherwise, Prime members pay $2.99 and non-members pay $12.99 per order. Amazon said customers using same-day grocery delivery shop twice as often compared with those who do not.

Amazon has retooled its grocery unit in recent years; it brought Whole Foods Market more tightly under its umbrella and opened grocery delivery to non-Prime members. The company said fresh foods are now central to attracting and retaining online shoppers.