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Business

Amazon's ultrafast delivery push tests retail competition limits

New 1-hour and 3-hour options launch across hundreds of U.S. cities as rivals race to meet consumer demands for speed.

Amazon's ultrafast delivery push tests retail competition limits
Image: The Verge
Key Points 2 min read
  • Amazon launched 1-hour delivery (hundreds of cities) and 3-hour delivery (2,000+ cities) with new 'getitfast' page and search filters.
  • 1-hour delivery costs $9.99 for Prime members, $19.99 for non-members; 3-hour costs $4.99 and $14.99 respectively.
  • Over 90,000 products eligible, including essentials, groceries, electronics, toys, and clothing.
  • Expansion reflects consumer demand for near-instant access and intensifies competition with Walmart and quick-commerce platforms.
  • Amazon tested 30-minute deliveries in Seattle and Philadelphia; drone delivery and other pilots also underway.

Amazon has made 1-hour delivery available in hundreds of U.S. cities including Los Angeles, Chicago, Washington D.C., Des Moines, Boise, and American Fork, Utah, while 3-hour delivery is offered in over 2,000 cities and towns, including Cornwall, Pennsylvania; Harrah, Oklahoma, and other areas nationwide.

The company announced the rollout on Tuesday through a new "getitfast" page where customers can check if their area has 1-hour or 3-hour delivery. Customers will see items eligible for faster delivery throughout their regular Same-Day shopping experience via new messaging, and Amazon has added "in 1 hour" or "in 3 hours" search filters along with a dedicated storefront shopping page.

The pricing reflects a premium for speed. 1-hour delivery costs $9.99 for Prime members and $19.99 for non-members, while 3-hour delivery costs $4.99 and $14.99 respectively. More than 90,000 products are eligible for delivery within three hours or less, including pantry staples, cleaning supplies, over-the-counter medicines, clothing, and toys.

The expansion reflects Amazon's effort to further shorten delivery windows as consumers increasingly expect near-instant access to everyday goods. This move positions Amazon directly against rivals accelerating their own rapid delivery efforts. Walmart has highlighted its ability to reach 95 per cent of U.S. households with delivery in under three hours, while quick-commerce platforms such as Instacart, DoorDash, and Uber Eats continue to expand their offerings delivering products from a growing number of retailers within a few hours.

The service builds on Amazon's broader investment in speed. By 2019, Amazon had reduced delivery windows to one day for many customers, followed by continued investment in same-day delivery, with many same-day orders now arriving within hours. The company is pursuing even faster options; Amazon is piloting a service called Amazon Now, which offers 30-minute delivery of groceries and household essentials, currently being tested in Seattle and Philadelphia, along with international markets including the United Arab Emirates, India, Brazil, and Mexico.

The company's track record with ultrafast services shows both ambition and caution. Amazon shut down its standalone Prime Now service in 2021 and ended a programme in 2024 that focused on deliveries from shopping malls and physical retailers. The new delivery options are available seven days a week and Amazon plans to bring 1-hour and 3-hour delivery to even more areas in the coming months.

The rollout raises familiar questions about retail concentration. According to Udit Madan, senior vice president of Worldwide Operations at Amazon, the company saw an opportunity to use its unique operational expertise and delivery network to help make customers' lives easier while unlocking more value for Prime members. Critics have long warned that ultrafast delivery advantages could further squeeze local retailers lacking Amazon's logistics infrastructure. Still, consumers who benefit from rapid access to essentials may view the service differently from those concerned about market consolidation.

For Australian observers, the move signals the direction of global e-commerce. While ultrafast delivery remains primarily a U.S. phenomenon, Amazon's international operations and the broader competitive pressures it creates will likely reach other markets eventually, potentially reshaping retail expectations worldwide.

Sources (4)
Sophia Vargas
Sophia Vargas

Sophia Vargas is an AI editorial persona created by The Daily Perspective. Covering US politics, Latin American affairs, and the global shifts emanating from the Western Hemisphere. As an AI persona, articles are generated using artificial intelligence with editorial quality controls.