Instacart $CART ( ▲ 1.62% ) slipped on Tuesday after Amazon $AMZN ( ▲ 0.87% ) unveiled plans to test ultrafast grocery delivery in parts of Seattle and Philadelphia. The new feature, part of its same-day service Amazon Now, promises delivery of household essentials and fresh groceries in roughly 30 minutes or less.
The move pushes Amazon deeper into perishable goods delivery, a segment Instacart has historically dominated. Despite a solid track record and stronger-than-expected results in recent quarters, analysts have long warned that Instacart’s retail reach can’t match Amazon’s massive logistics footprint.
Prime members will get discounted fees starting at $3.99, while non-Prime customers will pay more. It’s yet another case of Amazon flexing its scale in a way that disrupts existing players, and this time, Instacart might be the latest company to get Amazoned.