Amazon (AMZN) has given a huge blow in its battle against Walmart (WMT), unveiling a 1-hour delivery service across the US. Indeed, Amazon will be offering 1-hour and 3-hour shipping in markets across the U.S, including Los Angeles and Chicago, per an announcement Tuesday.
“We saw an opportunity to use our unique operational expertise and delivery network to help make customers’ lives a little easier while unlocking even more value for Prime members,” Amazon Senior Vice President of Worldwide Operations Udit Madan said in a press release. A 1-hour delivery option is available on more than 90,000 products, including everyday essentials, toys, and toilet paper, and will rely on its existing same-day delivery network. Furthermore, Perishable groceries are available in select areas, Amazon said.
According to Amazon, the 1-hour service is available in hundreds of cities, while the 3-hour delivery reaches over 2,000 locations. Prime members pay discounted fees of $9.99 for 1-hour and $4.99 for 3-hour delivery, compared to $19.99 and $14.99 for non-Prime customers. Additionally, Amazon uses its existing Same-Day Delivery sites and AI-powered inventory systems to fulfill orders quickly, offering everything from household essentials to electronics. The service operates seven days a week, with plans for further expansion.
Also Read: Amazon (AMZN) 10-Year Stock Prediction: Top Choice to Buy?
Amazon (AMZN) stock rose just under 2% in early trading on Tuesday. Compared to rival e-commerce stock Walmart (WMT), the former is down over 7% year-to-date, while WMT is up over 12%. The 1-hour and 3-hour delivery of Amazon is a huge step forward in that race, though, combining Amazon’s wide range of offerings with the delivery speed of an Uber or DoorDash.