Same-day delivery has picked up in the last few years, with same-day services offered by Amazon, Google, eBay, Walmart and startups like Instacart, in select cities. The companies typically offer their own range of goods and have partnered with chains (like eBay has) or local stores and restaurants (like Amazon has) to provide people with daily essentials, groceries, electronics and more.
People pay a fixed amount or subscribe to a service to qualify for the speedy delivery. But critics doubt the services create a profit, let alone break even. In fact, eBay slowed down its plans to expand its eBay Now service and may have shut it down altogether, choosing instead to focus on in-store pick ups.
So it’s an interesting time for the deep-pocketed Amazon to shake things up with its new one-hour delivery offer. Will Amazon dominate the instant delivery market in 2015 and attract more local partners? Will competitors ramp up their investments to compete? Will one-hour delivery become the new norm for urban dwellers?
Amazon Prime Now is an extension of Amazon’s Prime membership ($99/year) which includes free two-day delivery and unlimited access to an online library of content. Members can download the Prime Now app and browse items available for delivery at their location. They can opt for one-hour delivery for $7.99 (there’s no minimum order), or two-hour delivery for free – between 6am and midnight, seven days a week.
Prime Now is currently available only in Manhattan, with plans to expand to other cities.
This post is a part of our December monthly brief: Trends for 2015 – One Hour Delivery