Amazon (AMZN) has expanded Key’s In-Garage Grocery Delivery service to more than 5,000 locations. Initially launched in five cities, the service will now be available to eligible Prime members across the country.
These members can use the delivery service to have their Amazon Fresh and Whole Foods Market grocery orders delivered inside their garage, at no additional cost. However, a myQ connected smart garage door opener is a must to enable in-garage delivery.
The expansion is Amazon’s response to the growing demand for convenient and time-saving shopping systems. In the aftermath of the COVID-19 pandemic, customers have increasingly turned to shopping platforms that offer delivery services.
By Amazon expanding in-garage delivery to more cities, it recognizes that customers will continue to use the service post-COVID-19. A survey by Morning Consult has already shown that nearly 70% of Americans believe grocery delivery is essential.
“As customers look for more convenience in their daily lives, we’re excited to deliver another service that not only helps them save time, but provides peace of mind knowing that tonight’s dinner is safe in their garage and out of the weather” said Pete Gerstberger, Head of Key by Amazon. (See Amazon stock analysis on TipRanks).
BMO Capital’s analyst Daniel Salmon believes Amazon faces tough 1Q 2021 comps because of e-commerce acceleration amid the pandemic. However, as COVID-related expenses fade, the company should register improvements in its margins.
The analyst has reiterated a Buy rating on the stock and increased the price target to $4,200 from $4,000, implying 22.9% upside potential to current levels.
Consensus on Wall Street is that Amazon is a Strong Buy based on 33 unanimous Buy ratings. The average analyst price target of $4,118.69 implies 20.52% upside potential to current levels.
AMZN scores a 9 out of 10 on TipRanks’ Smart Score rating system, implying that it could beat market expectations.