Amazon launches 1-hour shipping in US cities to challenge Walmart

By Arriana McLymore

NEW YORK, March 17 (Reuters) – Amazon is ramping up its speedy delivery service by offering 1-hour and 3-hour shipping in markets across the U.S., including Los Angeles and Chicago, in its latest efforts to stave off e-commerce competition from its biggest rival Walmart. 

Fast delivery has been a significant part of Amazon’s push to increase basket sizes and shopping frequency. The company in December announced a separate service called “Amazon Now” to deliver grocery items and everyday essentials in 30 minutes or less in select locations including Seattle and Philadelphia.

“We saw an opportunity to use our unique operational expertise and delivery network to help make customers’ lives a little easier while unlocking even more value for Prime members,” Amazon Senior Vice President of Worldwide Operations Udit Madan said in a press release. 

The Seattle-based e-commerce giant said on Tuesday that its 1-hour delivery option is available on more than 90,000 products, including everyday essentials, toys and toilet paper, and will rely on its existing same-day delivery network. The 60-minute option has launched in major U.S. metropolitan areas and smaller cities like Boise, Idaho. The 3-hour option has launched in more than 2,000 cities and towns. Perishable groceries are available in select areas, Amazon said. 

To ensure the 1-hour and 3-hour orders are fulfilled in a shorter amount of time, Amazon introduced designated work stations for these orders within existing same-day delivery centers, new yellow labels that are placed on the packages for easy identification and updated signage throughout the site to easily direct delivery partners, the company said.

Using the high-speed delivery comes at an extra fee. Prime members pay an extra $9.99 for 1-hour delivery and $4.99 for 3-hour delivery. Shoppers without Prime memberships pay $19.99 for 1-hour orders and $14.99 for 3-hour deliveries.  

(Reporting by Arriana McLymore in New York City; Editing by Stephen Coates)