Amazon (AMZN) is launching ultra-fast deliveries across the U.S. that will see its packages delivered to consumers in 30 minutes or less.
The Seattle-based e-commerce company said it is offering 30-minute deliveries in dozens of cities across America.
The company piloted the quick delivery service, called “Amazon Now,” in a handful of American cities last December. But now, it is officially launching it in multiple U.S. centres.
Amazon said in a blog post that the service is now available in cities such as Austin, Denver, Minneapolis, Phoenix, Seattle, Philadelphia, Dallas, and Atlanta.
The company added that it plans to bring Amazon Now to “tens of millions of customers in these and other cities” by the end of this year.
Amazon has been working for years to make same-day delivery the industry standard and is further pressuring rival companies such as Instacart (CART) and DoorDash (DASH).
For more than a decade, Amazon has worked to make drone-based deliveries in an hour or less a reality.
Amazon CEO Andy Jassy has said that rapid delivery is worthwhile because it leads to higher conversion rates and keeps shoppers returning to Amazon more frequently.
Speeding up delivery could also dissuade shoppers from making trips to brick-and-mortar retailers such as Walmart (WMT), which is a major competitor to Amazon.
Amazon is relying on specialized micro-fulfillment centers that range from 5,000 to 10,000 square feet and can stock thousands of items.
The service also relies on Amazon’s network of “Flex drivers,” who sign up for shifts and make deliveries using their own vehicles.
Prime members will pay a $3.99 U.S. fee for an Amazon Now delivery and an additional $1.99 U.S. fee for orders below $15 U.S.
Customers without a Prime membership will pay a $13.99 U.S. delivery fee, along with an extra $3.99 U.S. for orders below $15 U.S.
AMZN stock has gained 29% over the last 12 months to trade at $268.99 U.S. per share.
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