Amazon is now testing the "Now" delivery option for customers in Seattle and Philadelphia. With Now, consumers will receive their orders in less than 30 minutes from one of Amazon’s micro-fulfillment centers. With over 5,000 stores, rival Walmart has a head start in the race for ultra-fast deliveries.
Amazon Now, which is currently being tested in Seattle and Philadelphia, can be selected for the delivery of fresh food and certain other everyday items, such as toothpaste, cosmetics, pet treats, diapers, paper products, electronics, seasonal items, over-the-counter medications, chips, dips, and more. In total, there are thousands of items that can be delivered lightning-fast—in 30 minutes or less. The delivery fee is $3.99—about 40 Swedish kronor—for Amazon Prime members, and $14—about 150 Swedish kronor—for everyone else.
Micro-fulfillment centers
Amazon uses specialized smaller facilities—so-called micro-fulfillment centers—that are designed for efficient order fulfillment and strategically located near customers. According to Amazon, this model shortens delivery times and improves safety for employees who pick and pack orders. Recently, the e-commerce giant has expanded its network of distribution centers and launched its own delivery service, Amazon Logistics. It also plans its distribution networks so that the location of the warehouses results in shorter transport distances and reduces handling during distribution.
Building logistics networks, investing in technology
With more than 5,000 stores across the United States, Walmart is significantly better equipped for fast, local deliveries than Amazon. Both companies are focused on improving their logistics networks and delivery speeds to gain market share and are competing intensely to offer the best last-mile deliveries. Amazon is constantly innovating with technologies such as drone delivery and autonomous vehicles to streamline its delivery processes. Walmart is also embracing technology, including mobile apps and warehouse automation, to improve both efficiency and the customer experience. After many years of investment, Walmart can already deliver to 95 percent of all U.S. households within three hours. Given the demographics and geography of the United States, this is a tremendous achievement.
Partnerships
Both Walmart and Amazon are investing heavily in strategic partnerships as a means of delivering even faster. One example is that Amazon has expanded its ”Amazon Flex” program, which allows independent contractors to deliver packages. Walmart has similarly increased its use of store associates for deliveries, enabling faster service from store to customer.
The question, of course, is just how fast Lastamilen deliveries can be. And how fast do they really need to be?
