Amazon Stock Rises, Instacart Drops Amid ‘Ultrafast’ Delivery Launch
Amazon (AMZN) is launching an “ultrafast” delivery service in Seattle and Philadelphia, aimed at providing household essentials in approximately 30 minutes. This initiative is part of Amazon’s strategy to enhance grocery delivery options, making everyday items and fresh produce available to customers quickly. The service, named Amazon Now, is accessible via the Amazon app in designated areas.
Delivery Service Details
Amazon will utilize smaller warehouses located near densely populated regions in these cities. However, customers should note that this service incurs a higher cost compared to Amazon’s standard delivery options. Pricing for deliveries is set at:
- $3.99 for Prime members
- $13.99 for non-Prime users
- Delivery drivers can also be tipped
Competitive Landscape
This move comes as Amazon intensifies its grocery business, having announced same-day delivery for perishables in August, with aspirations to reach 2,300 markets across the United States. Wedbush analyst Scott Devitt emphasized that Amazon’s expansion into the grocery delivery space challenges competitors like Instacart and DoorDash.
Stock Market Reactions
After the announcement, Amazon’s stock saw a 1% increase, reaching $236.18 in premarket trading. In contrast, shares of Instacart’s parent company, Maplebear (CART), fell by over 2%, trading at $41.64. Instacart, recognized as the leading on-demand grocery platform, faces ongoing challenges as Amazon expands its market share.
Devitt has downgraded Instacart’s stock rating from neutral to underperform, highlighting competitive pressures from Amazon’s offerings. DoorDash (DASH) stock also experienced a slight decline, dropping nearly 1% to $203.88.
Impact on Instacart
Instacart’s performance has been erratic throughout 2025, its second year as a public entity. The stock has gained only 3% year-to-date, largely due to concerns over Amazon’s competitive presence. Earlier this year, Instacart underwent leadership changes, with former CEO Fidji Simo departing for OpenAI, adding to the company’s uncertainty. Despite a positive reaction to its third-quarter earnings in November, the recent stock slide hinders its recovery efforts.
