Amazon (AMZN) is pushing fast, free delivery into overdrive with a new “ultrafast” service that can deliver merchandise and groceries in less than 30 minutes.
According to sources cited by The Information, Amazon (AMZN) has been polling large packaged goods merchandisers for items that could be sold through the new service. To expedite delivery, the company is also seeking municipal approval to build or renovate small delivery hubs in Seattle, Philadelphia, and Ft. Worth, and is recruiting warehouse staff and delivery drivers for “Amazon’s fastest delivery operation.”
Amid intensifying competition from Walmart (WMT), Target (TGT), Instacart (CART), DoorDash (DASH), and Uber Eats (UBER), Amazon has been pursuing new approaches to differentiate its delivery business.
It recently launched perishable grocery delivery and has been experimenting with ultrafast delivery in Europe through a partnership with Gopuff and in Mexico with Rappi.
To cut delivery times by as much as half, Amazon (AMZN) plans to offer ultrafast delivery through convenience store-style fulfillment centers, The Information claims, where Flex workers will pick up orders that were packaged by warehouse workers.
And by offering even faster delivery, Amazon (AMZN) aims to capitalize on the surging demand for frequently ordered items.
“Everyday Essentials continues to grow quickly, and year-to-date is growing nearly twice as fast as the rest of the business,” Amazon CEO Andy Jassy said on the company’s most recent earnings call.