Amazon is expanding its 30-minute delivery service Amazon Now to new cities after testing in Philadelphia and Seattle last year. The company aims to reach tens of millions of people by the end of 2026. Amazon Now bolsters the company's array of fast shipping options, including one-hour and three-hour delivery and drone delivery in certain locations.
Like other same-day services, Amazon Now is used by customers to expedite delivery of products needed quickly, such as household items, personal care products and groceries. CEO Andy Jassy said on an earnings call last month that perishable goods make up nine of the top 10 most-ordered items for same-day delivery on Amazon. Amazon Now is available 24 hours a day in most areas where it's offered.
Amazon uses a network of smaller locations designed for efficient order fulfillment, strategically placed close to where customers live and work to deliver in minutes. This approach prioritizes the safety of employees picking and packing orders, reduces the distance delivery partners need to travel, and enables faster delivery times for customers.
Prime members pay a $3.99 fee per order through Amazon Now to use the service, while non-Prime customers are charged $13.99. An additional fee applies to orders below $15, with the charge being $1.99 for Prime members and $3.99 for other customers.
Beyond Amazon, other companies are strengthening their fast delivery capabilities this year to meet customer demand. Walmart-owned Sam's Club launched one-hour delivery across more than 600 locations last month, and Dollar General expanded the reach of its same-day delivery service earlier this year.
Key Takeaways:
1. Amazon is expanding its 30-minute delivery service Amazon Now to new cities following tests in Philadelphia and Seattle.
2. The service aims to reach tens of millions of people by end of 2026 and is available 24 hours a day in most areas.
3. Amazon Now leverages smaller fulfillment locations strategically placed near customers to enable fast delivery.
4. Prime members pay $3.99 per order while non-Prime customers are charged $13.99 to use the service.
5. Competitors including Sam's Club and Dollar General are also expanding fast delivery capabilities to meet customer demand.
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