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Amazon Expands Same-Day Delivery to Perishable Foods to Compete with Instacart and Walmart

Amazon Prime subscribers can now receive perishable items—including strawberries, milk, meats, and frozen meals—on the same day they order, as the company expands its fast-delivery service. The option is free for Prime members on orders over $25 and available to non-members for a $12.99 fee. Previously, perishable groceries were delivered via Amazon Fresh or Whole Foods, often requiring an additional subscription fee.

The service is currently available in over 1,000 U.S. cities, with plans to expand to 2,300 by year-end. Analysts say the lower order threshold and inclusion of groceries in Prime could attract more members and pressure competitors like Instacart, Walmart+, DoorDash, and Uber Eats. Amazon has invested $4 billion to expand same-day and next-day delivery across rural U.S. communities.

Instacart CEO Fidji Simo Joins OpenAI as Chief of Applications

Fidji Simo, CEO of Instacart and former head of Facebook, will join OpenAI later this year as its new Chief of Applications, according to OpenAI CEO Sam Altman. Simo will report directly to Altman, who retains his role at the top of the Microsoft-backed AI company.

Key Developments:

  • Leadership Transition: Simo will step down from her CEO role at Instacart, but will remain Chair of the Board to assist with a smooth transition. A new CEO, expected to be an internal promotion, will be announced shortly, Simo said in an email to employees.

  • New Role at OpenAI: As Chief of Applications, Simo will oversee the development of consumer-facing products, including ChatGPT, and will play a pivotal role in expanding OpenAI’s product ecosystem.

  • Board Connection: Simo joined OpenAI’s board in March 2023, shortly after Sam Altman was reinstated following a dramatic ouster and return in late 2023.

  • Instacart Performance: Simo has led Instacart since 2021, taking the company public in September 2023 and steering it to profitability. The firm recently issued an upbeat forecast, citing strong demand in online grocery delivery.

  • Tech Background: Before Instacart, Simo spent over a decade at Meta, serving as head of Facebook from 2019 to 2021, and currently sits on Shopify’s board.

OpenAI’s move to hire Simo comes just days after the company reaffirmed its nonprofit governance structure, dampening Altman’s push for more direct control while preserving investor confidence in its commercial trajectory.