Amazon escalates retail speed war with 30-minute delivery
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Amazon announced Tuesday that it is rolling out Amazon Now to dozens of cities, which it described as an "ultra-fast delivery service." Photo: Courtesy of Amazon
Amazon is pushing deeper into "instant retail" with a new 30-minute delivery service, escalating its speed race with Walmart, Target and delivery apps.
Why it matters: Retailers once competed to deliver in days, then hours. Now the race is to fulfill last-minute orders almost instantly — reshaping how consumers shop for everyday items.
- The push reflects a broader shift toward "instant commerce," where retailers and delivery platforms increasingly aim to get an item to shoppers faster than they could go get it themselves.
Driving the news: Amazon said Tuesday it is expanding "Amazon Now," a new 30-minute delivery service offering thousands of groceries, household essentials and other items across dozens of U.S. cities.
- The service is widely available in Atlanta, Dallas-Fort Worth, Philadelphia and Seattle, with expansion underway in cities including Austin, Denver, Houston, Minneapolis, Orlando, Oklahoma City and Phoenix.
- The announcement follows Amazon's March expansion of one-hour and three-hour delivery options across a growing number of U.S. cities.
Follow the money: Prime members pay $3.99 per Amazon Now order, while non-members pay $13.99.
- Additional fees apply to smaller orders.
The big picture: The battle for consumer spending is increasingly becoming a battle over speed.
- Amazon, Walmart and Target have spent years shrinking delivery windows as e-commerce competition intensifies and shoppers grow more accustomed to on-demand convenience.
- The rise of Uber Eats, DoorDash, Instacart, Shipt and Gopuff has conditioned consumers to expect near-instant fulfillment for everything from meals to groceries and household basics.
- Sam's Club told Axios in April that some orders through its new Express Delivery service are arriving in as little as 15 minutes.
What they're saying: "Amazon Now is for when you need or want the convenience of getting your Amazon order delivered in 30 minutes or less," Udit Madan, Amazon's senior vice president of worldwide operations, said in a statement.
- Amazon said customers can use the service for everything from dinner ingredients to electronics and household essentials.
Yes, but: Faster delivery can be expensive for retailers and consumers alike.
- More than 95% of shoppers prefer free standard delivery over paying for faster shipping, according to a recent McKinsey survey of consumer delivery preferences.
- Ultra-fast delivery tends to work best in dense urban and suburban areas, where retailers can position inventory and drivers closer to customers.
The bottom line: Retailers are pushing closer to a future where it's faster to have products delivered than to leave home and buy them yourself.
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