Amazon Stock Gains, Instacart Falls On Amazon Now ‘Ultra-Fast’ Delivery Plan

Amazon (AMZN) will test an “ultra-fast” delivery service in Seattle and Philadelphia that promises to bring household essentials to customer doorsteps in about 30 minutes or less. Amazon stock gained early Tuesday, while shares of Instacart parent Maplebear (CART) fell and DoorDash (DASH) stock edged lower.

Amazon said in a blog post late Monday that it will offer “thousands of everyday household essentials and fresh grocery items” through the service, which it calls Amazon Now. The service is available within the Amazon app for customers in eligible areas of the two cities. It will utilize smaller warehouses close to the most dense areas in both markets.

The deliveries come at a higher cost for customers than Amazon’s standard same- and next-day shipments. Orders are $3.99 each for Prime members and $13.99 for non-Prime users, as well as an option to tip delivery drivers.

Amazon has made a major push into selling more groceries in recent months. The tech giant said in August that it will offer same-day delivery on perishables, with plans to reach 2,300 U.S. markets this year.

“Amazon has already validated its share in non-perishable delivery, and the competitive environment intensified with the expansion of its same-day grocery service in August,” Wedbush analyst Scott Devitt wrote to clients late Monday. “We view Monday’s announcement as a pivotal step forward in Amazon’s broader strategy to capture incremental share in the category. Notably, Amazon can meet logistical challenges faced by many grocery retailers in both smaller towns and larger MSAs (metropolitan statistical areas), which have typically been addressed by third parties, such as Instacart.”

Amazon Stock Higher, Instacart Stock Falls

On the stock market today, Amazon stock is ahead 1% at 236.18 in premarket trades. Instacart stock fell more than 2% to 41.64. Instacart is the leading on-demand grocery platform.

Devitt downgraded Instacart stock to an underperform rating from Wedbush’s previous neutral call earlier this year. He said Instacart’s position has been “directly challenged by Amazon’s expansion.”

DoorDash stock was down nearly 1% at 203.88. The company competes with Instacart for grocery on-demand delivery in the U.S. but derives the majority of its sales from restaurant deliveries.

Uber Technologies (UBER) is also competing for grocery delivery but also focuses its Uber Eats operations more on restaurants. Uber stock was ahead a fraction, near 86.93 in premarket trading.

Instacart stock has had volatile 2025, which is its second full year as a public company. Shares have gained just 3% overall year-to-date, with the fear of Amazon as a competitive threat weighing on shares. The company also changed leaders earlier this year, after former Chief Executive Fidji Simo left for OpenAI. 

The stock got a boost following its third-quarter earnings results on Nov. 10 and had nearly recovered back above its 200-day moving average for the first time since September. But Tuesday’s slide will set back that effort.

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