Amazon.com broadened its push into the lucrative U.S. grocery market, adding fresh-food delivery to its same-day service in more than 1,000 cities and towns and pledging to reach over 2,300 locations by year-end. Prime subscribers receive free delivery on orders of at least $25, while smaller baskets cost $2.99; non-members pay a $12.99 flat fee. The move deepens Amazon’s presence in a category that generated more than $100 billion in grocery and household-essential sales for the company last year, excluding Whole Foods. Research firm Numerator estimates Walmart controls 21.2% of grocery spending, underscoring the scale of competition Amazon faces as it seeks to convert high-frequency food purchases into stronger Prime loyalty. Analysts framed the rollout as a strategic challenge to incumbent retailers and delivery platforms. Bank of America, which keeps a Buy rating and a $272 price target on Amazon, said wider fresh-food coverage should boost customer frequency and lock-in. Evercore ISI, with an Outperform rating and $280 target, called the initiative a meaningful step toward integrating groceries with Amazon’s vast general-merchandise catalogue, intensifying pressure on Instacart and Walmart+. Wells Fargo cautioned, however, that execution and local assortment will determine whether the e-commerce giant can overcome entrenched regional grocers.