Amazon (NASDAQ:AMZN) is broadening its rapid-delivery offering across the United States as the company accelerates its push into the fast-growing quick-commerce market.
The service, branded Amazon Now, was initially introduced as a pilot program in several U.S. cities last December and has now expanded into Austin, Denver, Minneapolis and Phoenix, along with larger coverage areas in Seattle, Philadelphia, Dallas and Atlanta.
Amazon said Tuesday that it expects the service to reach tens of millions of customers across these and additional cities before the end of the year, compared with the millions currently covered.
Amazon Continues Push Toward Faster Delivery Speeds
The expansion marks another step in Amazon’s long-term effort to shorten delivery times after previously making two-day and next-day shipping standard for many customers.
More recently, the company introduced one-hour and three-hour delivery windows in additional U.S. markets.
Chief Executive Officer Andy Jassy said in his latest annual shareholder letter that investments in faster delivery continue to improve customer engagement and purchasing activity.
According to Jassy, quicker delivery speeds help drive higher conversion rates while also encouraging customers to shop more frequently on Amazon’s platform.
Amazon Intensifies Competition in Quick-Commerce Market
The rollout increases competitive pressure on delivery-focused platforms including Instacart, DoorDash and Uber Eats, which generally offer delivery times measured in hours rather than minutes.
Amazon is also competing more directly with Walmart, which currently advertises delivery coverage to 95% of U.S. households within three hours.
Products eligible for rapid delivery carry an Amazon Now label featuring a lightning bolt icon, and the company has created a dedicated landing page for the service.
Micro-Fulfillment Centers Support Rapid Delivery Model
To support the faster delivery network, Amazon is relying on micro-fulfillment facilities, often referred to as dark stores, ranging between 5,000 and 10,000 square feet.
These smaller facilities are positioned closer to urban customers than Amazon’s traditional warehouses, which are usually located near major highways and logistics corridors.
Deliveries are currently handled through Amazon’s Flex driver network, which uses independent drivers operating personal vehicles.
The company said it may introduce alternative transportation methods in certain markets as the service expands further. Amazon has already integrated electric cargo bikes into parts of its last-mile delivery operations in selected cities.
Amazon Expands Ultra-Fast Delivery Globally
The 30-minute delivery service currently operates around the clock in most participating U.S. markets.
Amazon has also introduced even faster delivery offerings internationally, including 15-minute delivery services in parts of Brazil, Mexico, India and the United Arab Emirates.