Core Insights - Amazon is launching a new service called Amazon Now, which aims to provide ultrafast delivery of essentials within 30 minutes in Seattle and Philadelphia [1] - The company is enhancing its fulfillment capabilities to compete with Walmart, which currently has a faster delivery system due to its extensive network of stores [2][3] Group 1: Amazon's New Service - Amazon is testing a 30-minute delivery service, allowing customers to receive items like diapers, milk, and electronics quickly [1] - In Seattle, Amazon workers prepare orders at warehouses, which are then delivered by Amazon Flex drivers within two minutes of order collection [2] Group 2: Competitive Landscape - Walmart operates over 4,600 stores in the US, enabling it to reach 95% of American households within a three-hour delivery window [3] - More than one-third of Walmart shoppers pay extra for deliveries in under an hour, showcasing the demand for rapid fulfillment [3] Group 3: Challenges in Ultrafast Delivery - Supply chain consultant Ralph Asher indicates that achieving 15-minute delivery may require a significant increase in fulfillment centers and inventory, which could be financially and logistically challenging [4][5] - Asher's analysis suggests that a 30-minute delivery model is more feasible, as it requires fewer fulfillment stations compared to a 15-minute model [5][6]
Amazon is speeding up its delivery with a new ultrafast test that arrives in 30 minutes or less