Higher gas prices could end up benefiting Amazon’s e-commerce business as consumers look for ways to avoid driving to stores and focus more of their spending on household essentials.Gas prices surpassed $4 a gallon for the first time since 2022 earlier this year, driven by disruptions to oil supply amid the U.S.-Iran war. As of Thursday, the national average for regular gas stands at $4.43, well above the $3.16 average a year ago, according to the American Automobile Association.
The spike has squeezed household budgets and changed how people shop. Consumers are pulling back on discretionary spending: Foot traffic data from Placer.ai shows visits to discretionary retailers declined year over year for the fourth consecutive week as of the week of May 11, while visits to non-discretionary retailers rose for the fourth straight week. Shoppers are gravitating toward warehouse clubs, superstores and off-price chains instead.
That sets up a potentially favorable moment for Amazon. The company has made same-day and ultrafast delivery a central priority in recent years, and it has leaned heavily into grocery as a growth category. Analysts say those investments could now pay off.
The e-commerce giant has spent the last several years building out faster delivery options for groceries and everyday items. Amazon’s recent push into one-hour, three-hour and even 30-minute delivery positions the company to capture more demand from consumers who want convenience without additional trips by car.
