Amazon intensifies delivery battle as one-hour shipping rolls out across US

by Girls Rock Investing

Amazon is stepping up its push into ultrafast delivery, rolling out one-hour and three-hour shipping options across parts of the US as competition in rapid fulfilment intensifies.

The company announced on Tuesday that three-hour delivery is now available in approximately 2,000 cities and towns, while one-hour delivery has been launched in hundreds of those locations.

The expansion reflects Amazon’s effort to further shorten delivery windows, as consumers increasingly expect near-instant access to everyday goods.

Faster rollout

The new service builds on pilot programmes that began late last year.

Amazon said it plans to extend the offering to more regions in the coming months as it scales operations.

More than 90,000 products are eligible for delivery within three hours or less.

These include pantry staples, cleaning supplies, over-the-counter medicines, clothing, and toys.

To support the rollout, Amazon has introduced a dedicated storefront in areas where ultrafast delivery is available.

Shoppers can filter search results to identify products eligible for one-hour or three-hour delivery.

The company has also expanded its getitfast page, which highlights items that can arrive quickly.

Shift to quicker delivery

Amazon’s latest move is part of a longer shift in its delivery model.

The company transformed online shopping in 2005 with the launch of its Prime membership programme, which introduced free two-day shipping.

By 2019, Amazon had reduced that window to one day for many customers, followed by continued investment in same-day delivery.

Many same-day orders now arrive within hours, setting the stage for even shorter delivery times.

The introduction of one-hour and three-hour delivery marks the next step.

The strategy reflects changing consumer habits, with faster fulfilment becoming a key factor in purchasing decisions.

Ongoing experiments

Amazon’s efforts to cut delivery times have involved multiple trials and changes over the years.

The company has relied on its network of fulfilment centres and Flex gig workers to support rapid order fulfilment.

Some initiatives have been discontinued. Amazon shut down its standalone Prime Now service in 2021 and ended a programme in 2024 that focused on deliveries from shopping malls and physical retailers.

At the same time, new tests are underway. Amazon is piloting a service called Amazon Now, which offers 30-minute delivery of groceries and household essentials.

The programme is currently being tested in Seattle and Philadelphia, along with international markets including the United Arab Emirates, India, Brazil, and Mexico.

The company has also been developing drone-based delivery systems for more than a decade, aiming to complete orders in under an hour.

Initially limited to small test areas, the service has since expanded to several cities.

Competition heats up

Amazon’s push comes as rivals increase pressure on delivery speed.

Walmart has highlighted its ability to reach 95% of US households with delivery in under three hours.

Meanwhile, quick-commerce platforms such as Instacart, DoorDash, and Uber Eats continue to expand their offerings, delivering products from a growing number of retailers within a few hours.

Amazon has set pricing for its ultrafast delivery services, with Prime members paying $9.99 for one-hour delivery and $4.99 for three-hour delivery.

Non-Prime customers will pay $19.99 and $14.99, respectively.

The post Amazon intensifies delivery battle as one-hour shipping rolls out across US appeared first on Invezz

You may also like