Amazon pushes 1-hour delivery in race with Walmart
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Amazon is rolling out new one-hour and three-hour delivery options across a growing number of U.S. cities, expanding its push into rapid delivery.
Why it matters: The race to deliver essentials in hours — not days — is accelerating as Amazon, Walmart, Target and others push faster fulfillment.
- The push builds on a broader shift, as fast delivery becomes a substitute for routine shopping trips.
Driving the news: Amazon said Tuesday that customers can now order more than 90,000 products — including household essentials, health and beauty items, electronics and toys — for delivery in as little as one hour.
- One-hour delivery is already available in hundreds of U.S. cities and towns, while three-hour delivery is live in more than 2,000 locations, the company said.
- Prime members will pay $9.99 for one-hour delivery and $4.99 for three-hour delivery, while non-members pay higher fees.
The big picture: Retailers are racing to shrink delivery windows as e-commerce competition intensifies and pushes further into on-demand delivery.
- Amazon is surfacing faster delivery more prominently, with new labels in search results and filters to steer shoppers toward items that can arrive within hours.
- Walmart said on its February earnings call that fast delivery — defined as under three hours — grew more than 60% last year, and the retailer can now reach about 95% of U.S. households with that speed.
- Target told Axios it offers same-day delivery in three hours or less to about 80% of the U.S. population, and next-day shipping to nearly 60%.
- Other platforms are pushing even further toward "instant commerce," with some deliveries arriving in as little as 15 minutes.
Yes, but: Faster isn't always better for retailers — or cheaper for consumers.
- Shipping costs have surged in recent years, pushing some companies to offer slower, lower-cost delivery options. For less urgent purchases, many shoppers are willing to wait if it saves money.
- More than 95% of shoppers prefer free standard delivery over paying for faster shipping, according to a McKinsey survey of consumer delivery preferences.
What they're saying: The company says the faster delivery options build on its Same-Day Delivery network, which operates in more than 9,000 U.S. cities and towns, using local fulfillment hubs to speed up picking, packing and delivery.
What's next: Amazon plans to expand the faster delivery options to more areas in the coming months. More moves toward faster delivery are expected across retail — including experiments like drones.
Editor's note: This story was updated with additional information on Target's same-day delivery offering.
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