Amazon accelerates delivery race with 30-minute dropoffs in dozens of U.S. cities

Amazon is rolling out “ultra-fast” deliveries to get packages to consumers in 30 minutes or less in dozens of cities across the U.S., the company announced Tuesday, marking its most aggressive push yet into quick commerce.

The company started piloting the service, called Amazon Now, in a handful of American cities in December. It’s also launched deliveries in 15 minutes or less in parts of Brazil, Mexico, India and the United Arab Emirates.

Amazon said in a blog post that it’s expanding the service to new cities including Austin, Texas, as well as Denver, Minneapolis and Phoenix and more parts of Seattle, Philadelphia, Dallas and Atlanta. The company said it plans to bring Amazon Now to “tens of millions of customers in these and other cities” by the end of this year, up from the millions of customers that can access it today.

After getting customers hooked on two-day shipping and then next-day delivery, Amazon has been working to make same-day arrivals the new standard, and is further pressuring gig economy companies like Instacart, DoorDash and Uber Eats, which drop off orders within a few hours.

Amazon recently brought 1-hour and 3-hour delivery options to more parts of the U.S. And for over a decade, it’s been working to make drone-based deliveries in an hour or less a reality, though the program has faced some challenges, including layoffs, safety incidents and regulatory setbacks.

CEO Andy Jassy wrote in his latest annual shareholder letter that the investments in rapid delivery are worthwhile because they lead to higher conversion rates and keep shoppers returning to Amazon’s site more frequently.

Speeding up delivery could also dissuade shoppers from making quick trips to brick-and-mortar retailers like Walmart, which has touted that it can deliver to 95% of American households in under three hours.

Udit Madan, Amazon’s senior vice president of worldwide operations, said Amazon Now is aimed at giving customers the option of ultra-fast delivery when they “need or want” an item ferried rapidly to their doorstep.

“You can get everything from groceries for dinner, to AirPods before a flight, to household essentials like laundry detergent or toothpaste delivered right to your door,” Madan said in a statement.

Items that are eligible for delivery in 30 minutes or less feature an Amazon Now label and a lightning bolt. The company also has a separate Amazon Now landing page.

Amazon is using specialized micro-fulfillment centers, often referred to as “dark stores,” for the deliveries. The sites, which range from 5,000 to 10,000 square feet and can stock thousands of items, are located closer to customers than Amazon’s typical sprawling warehouses that are often near highways or logistics hubs.

The service relies on Amazon’s network of on-demand Flex drivers, who sign up for shifts and make deliveries out of their own vehicles.

Amazon said Flex drivers will make ultra-fast deliveries using cars, but as Amazon Now expands, it is open to exploring other modes of transportation for certain geographies. The company has integrated e-cargo delivery bikes into its last-mile operations in some cities over the past few years.

The company said 30-minute deliveries will be available 24 hours a day in most areas where the service is available.

Prime members will pay a $3.99 fee for Amazon Now and an additional $1.99 fee for orders below $15, while customers without a Prime membership will pay a $13.99 delivery fee, along with an extra $3.99 for orders below $15.

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