Amazon (AMZN) has rolled out a new ultrafast delivery service, Amazon Now, promising household essentials and groceries in about 30 minutes in select neighborhoods of Seattle and Philadelphia. Customers can place orders directly through Amazon’s existing shopping app and website, where a new “30‑Minute Delivery” option appears in the navigation bar.
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Following the news, Instacart stock (CART) declined about 4% in the after-hours trading session due to concerns that Amazon’s expansion into rapid grocery delivery could increase competition and impact Instacart’s market share.
Amazon Now relies on specialized, smaller facilities located closer to residential and commercial areas. These hubs shorten delivery distances and allow faster service. The company has described the initiative as an extension of its logistics network, which already includes Same‑Day, Overnight, and Next‑Day delivery options for Prime members.
It must be noted that delivery fees start at $3.99 for Prime members and $13.99 for non‑Prime customers, with an additional $1.99 basket fee for orders under $15.
Amazon Accelerates Grocery Push
This expansion points to Amazon’s strategy to grow its grocery footprint. While the company already offers same-day delivery of perishable groceries in over 1,000 cities, with plans to expand to 2,300 by the end of 2025, the ultrafast service raises the bar by promising delivery in minutes rather than hours.
The move could drive higher sales, increase Prime member engagement, and strengthen AMZN’s position against rivals such as Walmart (WMT), Instacart, and regional grocery chains.
What Is the Price Target for Amazon Stock?
Currently, Wall Street has a Strong Buy consensus rating on Amazon stock based on 43 Buys and one Hold. The average AMZN stock price target of $295.23 indicates a 26.23% upside potential from current levels.
