*

Perishable food delivery service available in over 1,000

US

cities, expanding to 2,300 by year-end

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Amazon ( AMZN ) competes with Walmart+ and Instacart in grocery

delivery

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Amazon ( AMZN ) is investing $4 billion to expand same-day and

next-day

delivery in rural areas

By Arriana McLymore

NEW YORK, Aug 13 (Reuters) - Subscribers to Amazon.com's ( AMZN )

Prime service can now receive strawberries, milk, meats

and frozen dinners on the same day they order them as the

company expands its fast-delivery option to perishable food

items, Amazon ( AMZN ) announced on Wednesday.

It is the latest move by Amazon ( AMZN ) to compete with grocery

delivery services offered by Walmart+ and Instacart.

Shoppers in more than 1,000 U.S. cities - including Phoenix;

Raleigh, North Carolina; and Tampa, Florida - can get ice cream

delivered to their doors within hours, while Amazon ( AMZN ) plans to

expand the service to 2,300 cities by the end of the year. The

company announced in June that it is investing $4 billion to

bring same-day and next-day delivery services to more than 4,000

rural U.S. communities by the end of the year.

Previously, Prime subscribers' grocery orders were fulfilled

through Amazon Fresh or Whole Foods. Now the additional service

will complete orders through its same-day delivery logistics

locations.

Same-day delivery is free for Prime members, who pay $14.99

monthly or $149 annually, for orders over $25. Walmart's ( WMT )

membership service, Walmart+, costs $98 a year and offers

same-day delivery in under three hours-with some orders arriving

in as little as 30 minutes.

As the largest grocery retailer in the United States, most of

Walmart's ( WMT ) deliveries tend to be dry groceries and perishables.

In May, Walmart ( WMT ) said it will soon be able to offer delivery

within three hours to 95% of the U.S. population, and that

faster delivery speeds are helping drive its business. Between

February and April, Walmart ( WMT ) reported a 91% increase in

deliveries under three hours compared with the same period last

year.

Amazon ( AMZN ) shoppers "can order milk alongside electronics;

oranges, apples, and potatoes with a mystery novel; and frozen

pizza at the same time as tools for their next home improvement

project - and check out with one cart and have everything

delivered to their doorstep within hours," Doug Herrington,

chief executive of Worldwide Amazon Stores, said in a press

release.

E-commerce giant Amazon ( AMZN ) has struggled in previous years to get

shoppers into its physical stores. While the company is

focusing on its U.S. grocery experience, it is facing hurdles in

the UK with its suppliers, a study by British grocery regulator

the Groceries Code Adjudicator found.