NEW YORK (AP) — Amazon is making waves again by promising to deliver your urgently needed items in under 30 minutes for an extra fee. This service, called Amazon Now, started in India last year and is now expanding to cities across the globe, including the U.S., UK, and Brazil.
These quick deliveries are supported by small order-processing hubs, about the size of a CVS store, stocked with around 3,500 everyday items. From cough medicine to salad ingredients, these hubs aim to cater to those who can’t wait. According to Beryl Tomay, Amazon’s transportation head, “Customers love speed. When we offer faster options, they tend to buy more.”
Initially trialed in Seattle and Philadelphia, Amazon Now is becoming available in more cities like Atlanta, Dallas, Houston, and Orlando. Fees start at $3.99 for Prime members and $13.99 for non-members, with a small fee for orders under $15.
However, some consumers are pushing back against this focus on speed, considering its environmental impact and the workload it places on workers. That concern echoes a growing trend in shopping where speed isn’t the only priority anymore.
Amazon’s speedy service is a response to a larger competition with food delivery apps like Instacart and DoorDash. Retail analyst Bruce Winder notes, “Amazon brings unmatched supply chain expertise.” On the other side, companies like DoorDash emphasize their role in supporting local stores rather than competing directly with giants like Amazon.
Walmart is also in the race, providing fast delivery options for over 100,000 items, often arriving in under 30 minutes, according to Walmart CEO John Furner.
But not all quick delivery ventures succeed. Research analyst Sucharita Kodali points to many short-lived companies that promised lightning-fast grocery deliveries during the pandemic but failed due to rising costs and dwindling investment. A notable cautionary tale is Domino’s, which had to retract its guarantee for 30-minute pizza deliveries after facing safety issues.
Brad Jashinsky, an analyst at Gartner, suggests that Amazon should learn from Domino’s experience. Instead of promises, Amazon plans to keep customers informed about their order status without rushing employees.
Experts like Kodali believe Amazon will need robust order volume from nearby customers to make the 30-minute service financially viable. While many still appreciate a quick delivery, there’s a noticeable shift among younger shoppers. Generation Z seems more willing to opt for slower shipping options, valuing sustainability and bulk deliveries over speed.
Interestingly, Amazon has had positive feedback from its early operations in India, where Prime members significantly increased their demand for 30-minute delivery. Tomay mentions, “It’s still early, and we’ll see how it evolves.”
For more insights into the impact of fast service on e-commerce, check out recent studies from sources like Retail Dive and Forrester Research.
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