Amazon is deepening its move into fresh food by adding perishable items such as meat and dairy to its same-day delivery service, which now reaches more than 1,000 U.S. cities and towns. The company said it expects coverage to extend to at least 2,300 locations by the end of the year. Prime subscribers will receive free delivery on grocery orders of $25 or more and pay $2.99 below that threshold, while non-members face a flat $12.99 fee. The announcement sent ripples through the e-grocery landscape: shares of DoorDash fell roughly 4% and Instacart dropped 14% during the week, while Walmart, the country’s largest grocer, lost more than 3%. Bernstein analyst Zhihan Ma argued the sell-off in delivery rivals was overdone, noting that online grocery penetration is still expanding and that third-party platforms retain advantages in selection and quick-turn deliveries. Ma set a $310 price target for DoorDash—about 25% above current levels—and a $63 target for Instacart, implying 43% upside. Other research houses echoed the view that Amazon’s broader grocery push enlarges rather than cannibalizes the online market, which is valued at more than $1 trillion in the United States alone. Bank of America said stronger grocery capabilities could lift Amazon’s customer frequency, while Wells Fargo cautioned that the company still has to match the breadth offered by local supermarkets. Even so, Evercore ISI called the expansion a significant step that tightens Amazon’s competitive positioning against both traditional retailers and dedicated delivery apps.