Amazon has announced the expansion of its "ultra-fast" delivery service, Amazon Now, which aims to deliver packages to consumers in 30 minutes or less across numerous U.S. cities. This initiative marks a significant step in Amazon's strategy to dominate the quick commerce sector, following a pilot program that began in December.
The service will be available in cities such as Austin, Denver, Minneapolis, and Phoenix, as well as additional areas in Seattle, Philadelphia, Dallas, and Atlanta. By the end of the year, Amazon plans to extend this service to tens of millions of customers, significantly increasing its current reach.
This move is part of Amazon's broader effort to make same-day delivery the norm, putting pressure on competitors like Instacart, DoorDash, and Uber Eats, which typically deliver within a few hours. CEO Andy Jassy has emphasized that investments in rapid delivery enhance customer retention and conversion rates.
The service utilizes specialized micro-fulfillment centers, known as "dark stores," which are strategically located closer to customers than traditional warehouses. Deliveries will be conducted by Amazon's Flex drivers, who use their own vehicles, and the company is considering additional transportation methods as the service grows.
Amazon Now will operate 24/7 in most areas, with fees for Prime members set at $3.99, plus an additional charge for smaller orders, while non-Prime customers will face higher delivery fees.
This aggressive push into ultra-fast delivery could reshape consumer shopping habits and further challenge brick-and-mortar retailers like Walmart, which claims to deliver to 95% of U.S. households in under three hours