"Amazon is testing half-hour or quicker deliveries of groceries and household essentials in parts of Seattle and Philadelphia, the e-commerce giant said Monday. The ultra-speedy delivery, dubbed Amazon Now, is about $14 per order, or about $4 for Prime members. Orders under $15 also incur a fee of about $2. In order to facilitate this offer, the company said it has placed small fulfillment facilities designed for efficiency "close to where Seattle- and Philadelphia-area customers live and work.""
"Amazon has closed more stores than it's opened in recent years. The e-commerce and tech giant shuttered its entire nonfood fleet, about 70 stores, a few years ago, and it has recently pruned its Amazon Fresh operation. That may not matter much, as its delivery has expanded and gotten faster. The company is speeding up delivery to 4,000 rural communities and expanding same-day fresh grocery delivery to more U.S. cities."
"With about 535 Whole Foods Market stores and 60 Amazon Fresh stores, Amazon has a small fleet compared to rival Walmart, which runs more than 5,000 U.S. locations, or even Target, with nearly 2,000. But its delivery operation is increasingly able to compete with that, according to Bank of America analysts led by Justin Post. The service also vies with the likes of Instacart and DoorDash, the analysts noted."
Amazon is testing ultra-fast, half-hour or quicker delivery of groceries and household essentials in parts of Seattle and Philadelphia under the name Amazon Now. The service charges about $14 per order or about $4 for Prime members, with orders under $15 incurring an additional roughly $2 fee. Amazon placed small fulfillment facilities close to customer concentrations to enable rapid fulfillment. The company closed many physical stores but expanded delivery reach, speeding delivery to rural communities and expanding same-day fresh grocery delivery. Inventory placement strategies shorten travel distances and reduce handling to accelerate Prime delivery, increasing competition with Walmart, Target, Instacart, and DoorDash.
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