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Amazon Expands 30-Minute Delivery Service to Dozens of U.S. Cities Under Amazon Now Brand

Amazon is rolling out deliveries in 30 minutes or less across dozens of U.S. cities, the company announced Tuesday, in what it describes as its most aggressive push yet into quick commerce.

 

The service, called Amazon Now, began as a pilot in a handful of American cities in December. Amazon has since expanded it to new markets including Austin, Dallas, Denver, Minneapolis, Philadelphia, Phoenix, and additional parts of Atlanta and Seattle.

 

The company said it plans to bring Amazon Now to "tens of millions of customers in these and other cities" by year-end, a significant expansion from the millions who can access it today.

 

Amazon Now is built on a network of micro-fulfillment centers — commonly called "dark stores" — that range from 5,000 to 10,000 square feet and stock thousands of items. Unlike the company's sprawling distribution warehouses typically situated near highways or logistics hubs, these facilities are positioned closer to customers to enable faster turnaround times.

 

Deliveries are handled through Amazon's on-demand Flex driver network, whose participants sign up for shifts and use their own vehicles. The company said it is open to exploring other transportation modes as the service expands, noting it has already integrated e-cargo delivery bikes into last-mile operations in some cities.

 

The service will be available around the clock in most covered areas. Prime members will pay a $3.99 delivery fee, with an additional $1.99 charge on orders below $15. Customers without a Prime membership face a $13.99 delivery fee, plus $3.99 for orders under $15.

 

Amazon has also launched a 15-minute-or-less delivery tier in parts of Brazil, Mexico, India, and the United Arab Emirates, underscoring the global scope of its quick-commerce ambitions.

 

Udit Madan, Amazon's senior vice president of worldwide operations, said the service is designed to give customers the option of ultra-fast delivery when they "need or want" an item. "You can get everything from groceries for dinner, to AirPods before a flight, to household essentials like laundry detergent or toothpaste delivered right to your door," Madan said in a statement.

 

CEO Andy Jassy, in his most recent annual shareholder letter, argued that investments in rapid delivery are worthwhile because they drive higher conversion rates and increase the frequency with which shoppers return to Amazon's platform.

 

The expansion intensifies competition with gig-economy delivery companies such as Instacart, DoorDash, and Uber Eats, which typically fulfill orders within a few hours. It also adds pressure on brick-and-mortar retailers — Walmart, for instance, has said it can deliver to 95% of American households in under three hours.

 

Amazon has been incrementally compressing its delivery windows for years, moving customers from two-day shipping to next-day and then same-day options. The company recently extended 1-hour and 3-hour delivery to additional parts of the country, and has spent more than a decade pursuing drone-based delivery, a program that has encountered regulatory setbacks and operational challenges along the way.

 

How quickly Amazon can scale Amazon Now to tens of millions of customers — and whether consumers will consistently pay the delivery premiums attached to the service — will be closely watched as the company tests just how far it can push the speed of modern commerce.

 

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