Amazon (AMZN) is launching 30-minute deliveries throughout US cities as part of its Prime Now service, with plans to make this available in most areas 24 hours a day.
Yahoo Finance Tech Editor Dan Howley discusses this new service and what it means for the broader express delivery space, especially as more companies employ the use of delivery robots.
Amazon is getting even faster launching 30-minute delivery services across several American cities. and yet another push by the company into express deliveries as competition heats up there. Dan Halley's been following the story. It's interesting as competition heats up, but it's not necessarily a space that Amazon has been playing as much in. Like, I think of like some of the grocery delivery services, right? Of of the world. But like Amazon hasn't really been playing in the ultra short-term space.
Well, they have their three-hour delivery, their one-hour delivery, you know, uh and this is now 30-minute delivery with Amazon now, which I it's a wild idea. And you know, one of the uh one of the uh uh ways in which they said it could be used is if you're getting ready to go to the airport and you like, you know, need a pair of AirPods or something like that. It's like, oh, that actually does kind of make sense. Yeah. Um or if you have a party coming up, maybe you need something like delivered.
You got something. I mean, are they charging for
So yeah, so for for No, it's not. Uh Prime members will pay $3.99 per order. Uh non-prime members will pay $13.99. Uh and then for small like tiny orders, you're going to pay an extra $1.99 for prime members and $3.99 for non-prime members. So there is there is a charge. It's also not in every city just yet. It's in uh Atlanta, Dallas, Fort Worth, Philly, Seattle, uh then Austin, Denver, Orlando, Phoenix, that's uh plans to explain there.
No New York.
Not on there. No, I did not see that in their release. So, I mean, it's they're they're what they're doing is they're making smaller kind of fulfillment centers throughout spaces to try to, you know, make it easier to get these items. Um and I guess, you know, we'll see if it comes to New York, that would be great.
I mean, in New York, there's more choices of like, I can go to the bodega and get it. Yes, it's right around the corner. It's easier than in a lot of other cities to get that that thing. Yes.
I'll toss out there though, sometimes there's stuff that you can't get at the bodega that you've got to get at like a Target or something that like you know, I you know, there's a Target they just opened in Queens, but like, you know, at least by me in Queens, it's, you know, a little hard to to get to and a little annoying. The subway doesn't always run.
Um, why are they doing this, Dan? Why do they want like I think of it as the courier market, right? Like why do they want to be in this market?
A lot of it is to make sure that they stay ahead of or, you know, keep pace or stay ahead of Walmart. That's I mean, it's their biggest competition in the space. Obviously, Walmart has their own speedy delivery services. And I think it's just, you know, the the quicker you can get people to turn around and buy more and more and more, the less they're going to go and look at something like a Walmart or something like a Target, for instance. Uh, you know, they have this 30-minute delivery. Uh again, I don't know what I'm going to be ordering that I need immediately, but you know, those ideas were were pretty good. Um and I think I'm always that person who like, I'll have people over and then I'll be like, oh god, I don't have food. Yeah yeah. What do I do? Um but they also have drone delivery services which, you know, I don't know how that's going to work in a city like New York. Uh I imagine people throwing rocks at it.
So where would that be?
Uh, there's uh uh I believe in Texas they have it. Um I I have to look up. I forget entirely where it was, but uh it's uh their drone delivery service. Uh Walmart uh also uh has one that they're they're trying and then, you know, but you got to imagine, I mean, I grew up in Jersey, right? I I uh talked with Josh Liton about this. That's either getting rocks thrown at it or it's getting shot down. I mean, I just don't think like, you know,
I don't know. Well, you have the other the other robot delivery server robot serve robotics has the has the driving ones and there there's been some that have tried to attack those, but no but it hasn't been that wide spread. They there's enough that that it works. Oh yeah.
Yeah, I mean, but then I think like, okay, well we have Porch Pirates that just follow around regular Amazon drivers and it's like, you know, okay, well now I got this now they don't even have to follow a car, they can just follow this drone. So I feel like it's it's just seems as though it doesn't to me doesn't make as much sense. Plus I don't need like, you know, uh, I don't know, a new remote, you know, from my TV delivered via drone. Just, you know, like I'll wait a week to get it or something like that. So it's it's just one of those things for me where I feel like it doesn't necessarily make the most sense. The 30-minute delivery and us it sold they sold me on it when they were like before the airport trip.
Yeah yeah yeah.
That I was okay with. And the hour, you know, but it is yeah, they I think it's mostly about uh keeping pace and and you know, running past Walmart and getting people
I got it. Yes.
you're going to make a purchase so much faster and so much off the cuff if you can say, okay, I'm going to get it right now versus, okay, I'm going to get it in a day or I'm going to get it in a day or two, which by the way, still insane to get something in a day.
Yeah, I mean and I've uh I've just just anecdotally, my own interactions with Amazon Prime, um when you buy something, they offer to send you groceries. like, do you want to add groceries? And it's not just whole foods that they're pulling from. They're they seem to be pulling from both their own grocery now and other local stores, which is an interesting development over the past six months or so.
Yeah, and I've I've honestly done the kind of uh uh like last second. Someone mentioned uh uh talking about like a game that we my friends and I play. Uh and they brought it up and I was like, oh, maybe I should buy that. Uh let's see. And then I just pulled up Amazon and it's like, get it tomorrow. And I was like, well, if I can get it tomorrow, why wouldn't I? And I think that's really kind of the idea. That impulse buy. If you can get it so fast, you're just going to say, oh yeah. Yeah.
Yes.
Cause it's true there are times when I
ve looked on and it's going to take longer and I just say,
Oh, exactly. Yes, yes, yes. I will I'll buy like paper towels through Amazon. I want to have two huge boxes of paper towels, not because I'm hoarding, but because I like to know that I got it there. You know, you feel rich when you got like two things of paper towels. Those things are expensive. That's, you know, that's crazy. So I I like to I like to get, you know, that but if they're going to say it'll be here in two weeks, I'm like, oh I'll just take the one.
Exactly.
All right, Dan, thank you so much.
I love paper towels guys.