December 10, 2025
photo_pw/Depositphotos.com
Does Amazon Need 30-Minute Delivery?
Amazon is testing an ultra-fast service that promises delivery of “thousands of everyday household essentials and fresh grocery items” within 30 minutes or less. The cost is tallied at $3.99 per order for Prime members, and $13.99 for non-Prime customers.
An extra $1.99 will apply to orders below $15 from Prime members.
The program, termed Amazon Now, is being piloted in parts of Seattle and Philadelphia. In those areas, Amazon Now has become part of the main Amazon shopping app, allowing users to track orders and tip delivery drivers. Users can check the “30-Minute Delivery” option in the app navigation bar to see if they’re eligible for the service.
The e-commerce giant has strategically placed micro-fulfillment centers near work and residential areas to support efficient order fulfillment. Amazon said in a press release, “This approach prioritizes the safety of employees picking and packing orders, reduces the distance delivery partners need to travel, and enables faster delivery times.”
Amazon said Amazon Now complements other ways Prime members can tap speedy delivery options, including same-day and next-day delivery. In select ZIP codes, Prime members can get same-day delivery — free for qualifying orders over a minimum amount ($25 in most cities), and costing up to $2.99 per order for orders under the minimum amount. For non-Prime members, that cost increases to $12.99.
Amazon, in mid-August, announced it had started offering same-day delivery of perishables in more than 1,000 cities and towns across the U.S. That number has since reached 2,300 locations across the U.S. as 2025 draws to a close.
Amazon Now: The Retailer’s Latest Push for Even-Faster Delivery
Amazon has experimented with ultra-fast delivery before. In 2014, the e-commerce giant introduced a “Prime Now” service that offered one-hour deliveries, but the service was discontinued in 2021.
Amazon Now could allow Amazon to better compete with rivals Walmart and Target, which have an advantage supporting delivery by fulfilling online orders from their massive store base. It could also further competition with delivery firms such as DoorDash, Uber Eats, and Instacart, which use retailers’ stores as warehouses.
The Information noted that Amazon Now will focus on its “everyday essentials” category — which includes household items, prepared food, and packaged snacks — that can be low margin, but encourage repeat buyers and bring shoppers to its website, which is beneficial to the overall business.
“We think Amazon Now is potentially an important step toward Amazon matching or even surpassing the immediacy benefit of in-store purchasing,” Bank of America analyst Justin Post said in a research note attained by FreightWaves.
“We expect Amazon Now to have low or even negative overall margins (about~$6 in fees plus product gross margins probably do not cover small basket delivery cost unless over a very short distance), but we think its impact on 2026 profitability will be limited given its small scale. Additionally, if the offering scales, Amazon Now could have an important lock-in benefit for Prime users,” Post wrote.
BrainTrust
Lisa Goller
B2B Content Strategist
Nolan Wheeler
Founder and CEO, SYNQ
Neil Saunders
Managing Director, GlobalData
Recent Discussions
Discussion Questions
How important is it for Amazon to develop an ultra-fast delivery option?
Do you see micro-fulfillment centers ultimately supporting ultra-fast delivery better than utilizing stores?
Poll
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Amazon needs to gain a competitive advantage in grocery/consumable delivery, and this is a key step to achieving that. What remains to be seen is how detrimental this is to their (already low) margins, and if the volume of the program can sustain the inferred lack of profitability.
I think we need to separate how we consider this idea into two parts. First, is there significant profit — increased sales and increased margins — possible from Amazon offering 30 minute delivery? There’s no question in my mind that this answer is “NO”. That leads me to the second question — does Amazon gain some other advantage through this idea? That depends. Announcements like this have regularly driven traditional retailers into wasting money so perhaps it has a competitive advantage. Such announcements have also been used by Amazon to draw in investment money — taking it away from other retailers. At other times, announcements like this have been used to distract investors from serious investigation of profits on retail-like sales. In other words, seems to me the capability has no significant market value so Amazon must be seeking some other value.
Amazon has the data to prioritize and stock the items it considers essential based on the same day, overnight and next day delivery orders. Amazon has the potential to own the major metros however Walmart still has the store footprint advantage for rural Americans.
Hey if you soaped up your hands without realizing you don’t have a towel…damn right 5 minute delivery is essential !! No seriously – at least as serious as one can be for a topic that’s been asked 858 times more than necessary – while there may be items that fit this description, they are few and far between. Whether there are enough to justify this, we’ll just have to wait and see (not that Amazon will tell us: it will simply go away… amid hurrahs to Amazon for “being bold”)
I believe developing an ultra-fast delivery capability is important for Amazon — not because every shopper expects a 30-minute arrival, but because speed remains one of the last great differentiators in retail. As competitors close the gap on price, assortment, and service, the ability to deliver near-instant gratification reinforces Amazon’s reputation for ultimate convenience. For Amazon, ultra-fast delivery isn’t just about logistics — it’s about brand positioning: proving that it can still set the pace for how quickly retail moves.
That said, Amazon faces an uphill battle when compared to Walmart, which continues to combine speed and convenience with its Everyday Low Price promise and an unmatched physical network. With more than 4,700 U.S. stores located within 10 miles of 90% of the population, Walmart already possesses a local distribution infrastructure that Amazon can’t easily replicate. Walmart’s use of its stores as mini-fulfillment hubs — supported by curbside pickup, same-day delivery, and Walmart GoLocal partnerships — gives it an enormous advantage in cost efficiency and delivery speed, all while reinforcing its price leadership. Amazon, by contrast, must rely on a costly network of distribution and sortation centers and still faces high “last mile” delivery expenses in suburban and rural markets.
For Amazon to succeed with ultra-fast delivery, micro-fulfillment centers (MFCs) will likely be the more effective long-term model than using physical retail stores. MFCs offer the precision, automation, and density required for 30-minute delivery, without disrupting front-end retail operations. However, even if Amazon perfects this model, it will need to do so profitably — something Walmart’s store-based network already achieves by serving as both a retail destination and a local fulfillment node. In short, Amazon may win on innovation, but Walmart currently wins on proximity, scale, and operational economics — a combination that gives its version of speed and convenience a far broader and more sustainable reach.
Shoppers do not need things in 5 minute delivery. But the concept does reinforce the overall concept of Prime (aka continuing revenue) gets you perpetual speed.
Ecologically sound? Never
Does it make humans more lazy? Possibly. It reinforces the notion that planning for anything in advance would take too much brain power. (and gifting within 24 hrs of a holiday exemplifies your devotion to others!).
RE: “speed remains one of the last great differentiators in retail.”
Hopefully not the BEST differentiator… that would be very sad
Ultra-fast delivery makes Amazon more appealing to shoppers and more competitive against rivals.
Customers who use Amazon Now will find e-commerce more convenient and efficient with almost immediate access to products. The program also rewards Prime members’ loyalty with reduced fees.
Amazon Now leverages Amazon’s logistics prowess and supports Amazon’s appetite for a bigger share of the grocery market. Ultra-fast delivery will make Amazon Ads even more attractive to CPG brand advertisers.
Think of the hyperlocal real estate plays that Amazon must have made in recent years to get to our doorsteps in 30 minutes or less. It’s impressive.
hyperlocal real estate ….
the streets of USA that were not built with center divider lanes just to accommodate delivery vehicles.
I guess I’m the only one not thrilled with city driving in zigzag fashion to get around all the double parking.
I feel sad for emergency vehicles having to navigate city streets… real life/medical emergencies, vs someone who wanted toothpaste hand delivered in 20 minutes.
30 minutes or less, huh? Walmart Express Delivery will get your order to you in as little of 30 minutes or up to 90 minutes, depending on a variety of things. This isn’t pizza. Does anyone really need a 30 minute delivery window? Probably not.
I was going to say the exact same thing – does anyone really need this?! Amazon already is all about the convenience, what are they trying to prove? I get it, they don’t have a retail presence and want to take the entire market, but is it so bad that Walmart and Target own that space right now? I don’t think so.
Ultra fast delivery may not reshape Amazon’s whole model, but it does play a meaningful strategic role in specific categories. Speed matters when convenience drives the purchase, such as snacks, essentials, and quick fill grocery needs. The real value is Amazon strengthening its position in those high frequency and impulse driven moments when they can win customers who might otherwise turn to competitors like DoorDash or Instacart.
” Speed matters when convenience drives…”
The nature enthusiast in me disagrees. (eco damage, traffic, pollution, gas wasted)
Are Shein & Temu now considered good, ok for planet and to be praised?
Amazon wants $$$, obviously. But does that mean humans should be praised for lives of “convenience”?
” real value is Amazon”… not for humans who are putting out of business the local stores they need nearby. The stores they could get up off the couch & walk to (exercise) for that toothpaste that is needed in <30 minutes. The real value might be in teaching humans to create shopping lists; plan more than 30 minutes ahead of time in life.
Amazon looks like the 1950’s era movie The Blob. “Plot: An alien, gelatinous creature from space crashes to Earth and begins consuming people in a small town, growing larger and more dangerous.”
Ultra fast delivery is available for a relatively small part of the Amazon offer, which is determined by those items Amazon knows people need quickly. It will never be the mainstay of the Amazon delivery network, but it does fill a customer need. And because of its logistics network, Amazon can facilitate this in a way that many other players cannot.
While the retail world rushes toward the ultra-fast delivery model, the core question of long-term profitability remains unanswered. The strategy requires costly micro-fulfillment centers, leading to an increase in total inventory and negatively impacting cash flow despite potential time savings. Furthermore, this intense focus on speed overlooks critical human and community costs. Why is there minimal discussion on the increased road accidents and public safety factors that a 30-minute delivery promise will inevitably introduce? We must also address the profound stress and safety concerns placed upon the employees and contractors tasked with executing this aggressive timetable.
I have never even requested same-day delivery from Amazon, yet I am occasionally surprised when my order arrives the same day. Amazon has amazing algorithms that make such a decision: it is more efficient to deliver it today than to wait for tomorrow or the next day.
That being said, it would seem they know what they are doing with 30-minute delivery. Lisa Goller and Nolan Wheeler (above) point out some of the strategic value. But when I think of 30-minute delivery, I think of the 4-year-old having an “I want it now” tantrum.
Forgot something for the party you are attending this afternoon? Had your mouse break and needed a new one right away? Cases like this drive the need for 30 minute delivery. Does everyone need it all the time – no. But when your mouse breaks (like mine did yesterday), waiting overnight for delivery even seemed like forever!
Amazon is consistently finding ways (or experimenting with ways) to deliver a better experience. In this case, they are back to convenience and speed. They have always used speed as a differentiator. Depending on the location, they have the distribution and driver network, so 30 minutes is feasible. And customers will pay extra for convenience and speed. If not having to go to a store and getting it quickly is important, they won’t mind the extra cost. And if that extra cost covers most or all of the cost of a 30-minute delivery option and also promotes repeat business, I like the idea. Ultimately, Amazon needs to ensure this is financially feasible. We’ll know it’s working if they are still offering this level of service a year from now.
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Amazon needs to gain a competitive advantage in grocery/consumable delivery, and this is a key step to achieving that. What remains to be seen is how detrimental this is to their (already low) margins, and if the volume of the program can sustain the inferred lack of profitability.
I think we need to separate how we consider this idea into two parts. First, is there significant profit — increased sales and increased margins — possible from Amazon offering 30 minute delivery? There’s no question in my mind that this answer is “NO”. That leads me to the second question — does Amazon gain some other advantage through this idea? That depends. Announcements like this have regularly driven traditional retailers into wasting money so perhaps it has a competitive advantage. Such announcements have also been used by Amazon to draw in investment money — taking it away from other retailers. At other times, announcements like this have been used to distract investors from serious investigation of profits on retail-like sales. In other words, seems to me the capability has no significant market value so Amazon must be seeking some other value.
Amazon has the data to prioritize and stock the items it considers essential based on the same day, overnight and next day delivery orders. Amazon has the potential to own the major metros however Walmart still has the store footprint advantage for rural Americans.
Hey if you soaped up your hands without realizing you don’t have a towel…damn right 5 minute delivery is essential !! No seriously – at least as serious as one can be for a topic that’s been asked 858 times more than necessary – while there may be items that fit this description, they are few and far between. Whether there are enough to justify this, we’ll just have to wait and see (not that Amazon will tell us: it will simply go away… amid hurrahs to Amazon for “being bold”)
I believe developing an ultra-fast delivery capability is important for Amazon — not because every shopper expects a 30-minute arrival, but because speed remains one of the last great differentiators in retail. As competitors close the gap on price, assortment, and service, the ability to deliver near-instant gratification reinforces Amazon’s reputation for ultimate convenience. For Amazon, ultra-fast delivery isn’t just about logistics — it’s about brand positioning: proving that it can still set the pace for how quickly retail moves.
That said, Amazon faces an uphill battle when compared to Walmart, which continues to combine speed and convenience with its Everyday Low Price promise and an unmatched physical network. With more than 4,700 U.S. stores located within 10 miles of 90% of the population, Walmart already possesses a local distribution infrastructure that Amazon can’t easily replicate. Walmart’s use of its stores as mini-fulfillment hubs — supported by curbside pickup, same-day delivery, and Walmart GoLocal partnerships — gives it an enormous advantage in cost efficiency and delivery speed, all while reinforcing its price leadership. Amazon, by contrast, must rely on a costly network of distribution and sortation centers and still faces high “last mile” delivery expenses in suburban and rural markets.
For Amazon to succeed with ultra-fast delivery, micro-fulfillment centers (MFCs) will likely be the more effective long-term model than using physical retail stores. MFCs offer the precision, automation, and density required for 30-minute delivery, without disrupting front-end retail operations. However, even if Amazon perfects this model, it will need to do so profitably — something Walmart’s store-based network already achieves by serving as both a retail destination and a local fulfillment node. In short, Amazon may win on innovation, but Walmart currently wins on proximity, scale, and operational economics — a combination that gives its version of speed and convenience a far broader and more sustainable reach.
Shoppers do not need things in 5 minute delivery. But the concept does reinforce the overall concept of Prime (aka continuing revenue) gets you perpetual speed.
Ecologically sound? Never
Does it make humans more lazy? Possibly. It reinforces the notion that planning for anything in advance would take too much brain power. (and gifting within 24 hrs of a holiday exemplifies your devotion to others!).
RE: “speed remains one of the last great differentiators in retail.”
Hopefully not the BEST differentiator… that would be very sad
Ultra-fast delivery makes Amazon more appealing to shoppers and more competitive against rivals.
Customers who use Amazon Now will find e-commerce more convenient and efficient with almost immediate access to products. The program also rewards Prime members’ loyalty with reduced fees.
Amazon Now leverages Amazon’s logistics prowess and supports Amazon’s appetite for a bigger share of the grocery market. Ultra-fast delivery will make Amazon Ads even more attractive to CPG brand advertisers.
Think of the hyperlocal real estate plays that Amazon must have made in recent years to get to our doorsteps in 30 minutes or less. It’s impressive.
hyperlocal real estate ….
the streets of USA that were not built with center divider lanes just to accommodate delivery vehicles.
I guess I’m the only one not thrilled with city driving in zigzag fashion to get around all the double parking.
I feel sad for emergency vehicles having to navigate city streets… real life/medical emergencies, vs someone who wanted toothpaste hand delivered in 20 minutes.
30 minutes or less, huh? Walmart Express Delivery will get your order to you in as little of 30 minutes or up to 90 minutes, depending on a variety of things. This isn’t pizza. Does anyone really need a 30 minute delivery window? Probably not.
I was going to say the exact same thing – does anyone really need this?! Amazon already is all about the convenience, what are they trying to prove? I get it, they don’t have a retail presence and want to take the entire market, but is it so bad that Walmart and Target own that space right now? I don’t think so.
Ultra fast delivery may not reshape Amazon’s whole model, but it does play a meaningful strategic role in specific categories. Speed matters when convenience drives the purchase, such as snacks, essentials, and quick fill grocery needs. The real value is Amazon strengthening its position in those high frequency and impulse driven moments when they can win customers who might otherwise turn to competitors like DoorDash or Instacart.
” Speed matters when convenience drives…”
The nature enthusiast in me disagrees. (eco damage, traffic, pollution, gas wasted)
Are Shein & Temu now considered good, ok for planet and to be praised?
Amazon wants $$$, obviously. But does that mean humans should be praised for lives of “convenience”?
” real value is Amazon”… not for humans who are putting out of business the local stores they need nearby. The stores they could get up off the couch & walk to (exercise) for that toothpaste that is needed in <30 minutes. The real value might be in teaching humans to create shopping lists; plan more than 30 minutes ahead of time in life.
Amazon looks like the 1950’s era movie The Blob. “Plot: An alien, gelatinous creature from space crashes to Earth and begins consuming people in a small town, growing larger and more dangerous.”
Ultra fast delivery is available for a relatively small part of the Amazon offer, which is determined by those items Amazon knows people need quickly. It will never be the mainstay of the Amazon delivery network, but it does fill a customer need. And because of its logistics network, Amazon can facilitate this in a way that many other players cannot.
While the retail world rushes toward the ultra-fast delivery model, the core question of long-term profitability remains unanswered. The strategy requires costly micro-fulfillment centers, leading to an increase in total inventory and negatively impacting cash flow despite potential time savings. Furthermore, this intense focus on speed overlooks critical human and community costs. Why is there minimal discussion on the increased road accidents and public safety factors that a 30-minute delivery promise will inevitably introduce? We must also address the profound stress and safety concerns placed upon the employees and contractors tasked with executing this aggressive timetable.
I have never even requested same-day delivery from Amazon, yet I am occasionally surprised when my order arrives the same day. Amazon has amazing algorithms that make such a decision: it is more efficient to deliver it today than to wait for tomorrow or the next day.
That being said, it would seem they know what they are doing with 30-minute delivery. Lisa Goller and Nolan Wheeler (above) point out some of the strategic value. But when I think of 30-minute delivery, I think of the 4-year-old having an “I want it now” tantrum.
Forgot something for the party you are attending this afternoon? Had your mouse break and needed a new one right away? Cases like this drive the need for 30 minute delivery. Does everyone need it all the time – no. But when your mouse breaks (like mine did yesterday), waiting overnight for delivery even seemed like forever!
Amazon is consistently finding ways (or experimenting with ways) to deliver a better experience. In this case, they are back to convenience and speed. They have always used speed as a differentiator. Depending on the location, they have the distribution and driver network, so 30 minutes is feasible. And customers will pay extra for convenience and speed. If not having to go to a store and getting it quickly is important, they won’t mind the extra cost. And if that extra cost covers most or all of the cost of a 30-minute delivery option and also promotes repeat business, I like the idea. Ultimately, Amazon needs to ensure this is financially feasible. We’ll know it’s working if they are still offering this level of service a year from now.