Podcast Summary: Why Amazon's Fresh Food Delivery Won't Kill Walmart (Yet) | Fast Five Shorts

Podcast: Omni Talk Retail
Episode Date: August 21, 2025
Hosted by: Chris Walton & Anne Mezzenga

Episode Overview

In this episode, Chris Walton and Anne Mezzenga dive into Amazon's recent expansion of same-day perishable food delivery for Prime members, now available in over 1,000 U.S. cities. The big question: Should Walmart or Instacart be worried about Amazon grabbing a bigger share of online grocery? Both hosts critically evaluate whether this move threatens dominant players like Walmart and Instacart, examining price, logistics, consumer behavior, and Amazon's grocery reputation.

Key Discussion Points & Insights

1. Amazon’s New Perishable Delivery: Service Details

• Amazon now offers same-day delivery for perishable groceries (e.g., strawberries, milk, meats, frozen dinners) in 1,000+ cities, with plans to double that by year-end.
• Free for Prime members ($14.99/month or $139/year, minimum $25 order); $12.99 per order for non-members.
  [00:00-00:52]

2. Assessing the Threat to Walmart & Instacart

• Chris’s View: Not a major threat for now. Cites reasons including:
  • Consumers may not want fresh groceries mixed with general Amazon orders.
  • Walmart+ ($98/year) is a better value and Walmart is a trusted grocery brand.
  • Amazon lacks the same connotation for grocery quality or freshness.
  • Instacart/Doordash have strong relationships with established grocery retailers, which consumers already trust.
  • Amazon's cold-chain infrastructure for frozen food is questionable compared to the scale required.
• Quote (Chris Walton):

  “I don’t really see it as a big threat to either one... We actually don’t know if consumers really want to combine their fresh orders with everything else they’re getting from Amazon.” [00:52-01:36]

• Quote (Chris Walton):

  "Amazon grocery doesn’t mean anything. It has no connotation for freshness, which is a big hurdle to get over, you know, to make this happen.” [01:35-02:17]

3. Walmart’s Competitive Moat

• Value: Walmart+ is cheaper.
• Reputation: Walmart is perceived as an “actual grocer,” a significant advantage Amazon lacks.
• Quote (Chris Walton):

  "Walmart also still has a long-standing reputation as an actual grocer. So I don’t see conversion happening from Walmart either." [01:27-01:34]

4. Marketplace Competitors vs. Amazon

• Instacart & DoorDash: Connected to local grocers consumers trust; Amazon isn't.
• Amazon grocery’s brand is interchangeable, doesn’t inspire trust for fresh food shoppers.
• Logistics Hurdle: Amazon’s delivery trucks may not be equipped for frozen foods.
• Quote (Chris Walton):

  “Those trucks you see that Amazon's out delivering with, they're not going to be able to deliver frozen food. They're not equipped for that.” [02:26-02:36]

5. Anne's Perspective: Short-Term vs. Long-Term Threat

• Short-Term: Amazon may make a small dent, especially with free delivery, enticing Prime members to trial it.
• Long-Term: Skeptical of Amazon’s ability to maintain growth for perishable grocery delivery. Main reasons:
  • Consumers' trust and established grocery routines.
  • Quality/reliability of Amazon’s fresh food experience not yet proven.
  • Walmart leads in grocery-related searches; Amazon leads in general product search, not perishables.
• Quote (Anne Mezzenga):

  "I still don’t know that when they get those items it’s going to pay it off. And it’s still more expensive than a more reliable player like a Walmart Plus." [03:18-03:29]

• Quote (Anne Mezzenga):

  “I don’t see this like long term payoff of Amazon’s my go to for everything perishable, everything essentials product. I don’t think it’s enough to keep that momentum going for Amazon.” [04:19-04:35]

6. Search Behavior & Consumer Habits

• Product search for grocery is increasing at Walmart faster than Amazon (per eMarketer).
• As search habits change (especially with emerging search engines and AI tools), Walmart may continue to gain share, and Amazon risks falling behind in grocery.
• Quote (Anne Mezzenga):

  "...product search, when grocery is a component of the order, is increasing at a much more steady pace at Walmart than it is anywhere else." [03:51-03:58]

7. Data & Research References

• Jordan Burke & Tomorrow Group Data: Shows some impact for Amazon in the 1,000 test cities, but mostly for household and non-perishable products, not fresh foods.
• Chris questions the logic jump: Assuming the same demand will transfer to fresh/frozen groceries.
• Quote (Chris Walton):

  "That research study ... it seemed like that was more about household cleaning products and things like that that people are adding to their orders versus like actual fresh [groceries].” [04:39-05:08]

8. The Logistics Challenge

• Test order by Celia Van Wickle: Orders arrived at different times, with some perishable items (like tomatoes) separated from frozen goods, indicating logistical challenges Amazon needs to solve.
• Quote (Anne Mezzenga):

  “Celia did a test order and the stuff didn’t show up at the same time... Amazon needs to figure out the logistics of this potentially. But how long is that runway?” [05:26-05:54]

Memorable Quotes & Moments

• Chris Walton: “The difference between the Instacart and the DoorDash marketplaces and Amazon is that they're connected to the actual grocers from which consumers actually want to shop.” [02:07-02:16]
• Anne Mezzenga: “Amazon may still lead ... for that, you know, I need a phone charger ... But I think that it’s going to continue to lose share to places like, you know, LLM search engines or to Walmart.” [04:02-04:17]
• Chris Walton: “It’s a bit of a logic jump to say that [household goods ordering behaviors] are going to then happen with fresh and frozen foods, too, you know, because ... those orders can sit on your doorstep for a while. That can't happen with fresh and frozen food orders.” [05:08-05:20]

Summary

Chris and Anne agree that while Amazon’s expansion into same-day perishable grocery delivery is notable, it doesn’t pose an immediate threat to Walmart, Instacart, or DoorDash. Walmart maintains significant advantages in branding, value, and consumer trust. Meanwhile, Amazon faces delivery and logistics hurdles, especially with perishables, and lacks the legacy and reliability consumers demand for fresh grocery. Both hosts point to shifting consumer search behavior and note the scale and infrastructure challenge for Amazon. The move puts pressure on rapid delivery startups like Gopuff more than on the established grocery giants. Bottom line: Amazon’s grocery play is intriguing, but won’t dethrone Walmart in the near future.