It's also introducing thousands of perishable grocery items to its offerings, and will expand services to a total of 2,300 new locales by the end of 2025. The move positions Amazon as a strong competitor to Instacart and Walmart+, both of which offer same-day grocery delivery services.

Amazon called the move 'one of the most significant grocery expansions' for the online retailer as it introduces thousands of perishable items into its existing network.

The online retail giant plans to expand the service to 2,300 U.S. locations by year’s end in its quest to compete with Walmart.