Shares of Instacart (CART), DoorDash (DASH), and Uber (UBER) are under pressure Wednesday as Amazon (AMZN) touts the success of its perishable grocery delivery service and expansion into additional U.S. cities.
Over 2,300 cities and towns are now receiving same-day grocery delivery with continued expansion planned for 2026. Since August, Amazon (AMZN) has grown its perishable selection available for same-day delivery by more than 30%, including thousands of fresh food from Whole Foods Market.
“This expanded offering is supported by continued innovation within Amazon’s Same-Day Delivery network designed to deliver more selection, faster—innovation that puts us on track to deliver at our fastest speeds ever for Prime members globally for the third year in a row,” the company said in a post on its website.
This summer, the ecommerce giant offered fresh grocery delivery to customers in areas of Seattle, Los Angeles, Dallas, Chicago, Miami, and New York City, expanding to Boise, Salt Lake City, Fort Collins, CO., Omaha, Des Moines, Kennesaw, GA, Gaithersburg, MD, and Sugar Land, TX.
Amazon’s (AMZN) aggressive push to build a vertically integrated logistics network—through its fulfillment centers, extensive delivery infrastructure, vast product catalog, and scale advantages—has reshaped the grocery delivery space once dominated by third-party providers, pressuring companies such as Instacart (CART), DoorDash (DASH), UberEats (UBER), and Kroger (KR).
As a result, the pressure on Instacart’s (CART) competitive moat is clear: the stock has fallen 35% since August, hitting a 14-month low. And while CART had recovered a little more than half of that drop, shares turned negative again on news of Amazon’s (AMZN) expansion, ending a five-day winning streak with a 6% decline.
The pressure was not isolated to Instacart (CART). Shares of DoorDash (DASH) and Uber (UBER) are both down more than 4%, while Kroger (KR) is nearly 2% lower.