Dive Brief:
- Amazon is expanding its 30-minute-or-less delivery offering, Amazon Now, to dozens of additional U.S. cities, the e-commerce giant announced Tuesday.
- The service — now widely available in Atlanta, Philadelphia, Seattle and Dallas-Fort Worth, Texas — offers delivery on thousands of items, including fresh groceries and household essentials, the company said.
- The additional cities Amazon Now will expand into include: Houston, Minneapolis, Phoenix, Denver, Oklahoma City, Orlando, Florida; and Austin, Texas. The company said the service will reach tens of millions of customers by the end of 2026.
Dive Insight:
After tests in Philadelphia and Seattle last year, Amazon Now is growing to bolster the company's array of fast shipping options. Amazon also offers one-hour and three-hour delivery and drone delivery in certain locations.
Like other same-day services, Amazon Now is often used by customers to expedite delivery of products needed quickly, such as household items, personal care products and groceries. Perishable goods make up nine of the top 10 most-ordered items for same-day delivery on Amazon, CEO Andy Jassy said on an earnings call last month.
Amazon Now is available 24 hours a day in most areas where it's offered, according to Amazon.
"To deliver in minutes, Amazon Now uses a network of smaller locations designed for efficient order fulfillment, strategically placed close to where customers live and work," Amazon said in its announcement. "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.
