Apparently, back in the 1930s and 1940s, grocery delivery was a regular thing. It’s made a comeback in more recent days, and Amazon (NASDAQ:AMZN) is no exception. In fact, Amazon shares ticked upward slightly in Thursday afternoon’s trading following word that it’s looking to expand its delivery operations.
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Starting with Boston, Dallas, Phoenix and San Francisco—among a dozen cities total—Amazon will soon be making Amazon Fresh service available to Amazon customers who aren’t also Prime members. The difference is that they’ll be paying for those deliveries, at rates ranging from $13.95 for orders under $50, to $7.95 for orders over $100. In certain areas, customers willing to do the driving can pick up their own orders at no charge. With 44 Amazon Fresh grocery stores currently in existence, this won’t exactly be a widespread operation. At least, not yet.
The expansion is already serving share prices well. Amazon could use a lift following its recent move to pare back free returns, giving customers access to certain locations where returns without boxes and labels can be dropped off. The plan hasn’t come without downsides; one woman in Massachusetts detailed how she returned a product under Amazon’s new plan, but was given no means to track the package and ended up having to pay for it a second time. Expanding its grocery delivery options, therefore, might help win some shoppers it might have lost back.
Regardless, Amazon is a clear winner with analysts. With 29 Buy ratings, by unanimous decision, analyst consensus calls Amazon stock a Strong Buy. Further, with an average price target of $153.07, Amazon stock offers investors an 18.66% upside potential.