Amazon Expands Free Same-Day Delivery to 11 More Cities
Amazon.com (AMZN) is bringing its free same-day delivery service for members of its Prime subscription to many more cities in yet another move that will squeeze traditional retailers.
The online retailer said on Wednesday that the service would be available in 11 more metropolitan areas, including mid-sized cities like Cincinnati, Nashville, and Milwaukee, bringing the total to 27 areas. Amazon will also add more neighborhoods in areas that already have the free delivery option in centers like Dallas-Fort Worth and Los Angeles.
The move marks a major expansion of the service, which is free for anyone who pays the $99 annual Prime membership but has a $35 minimum order size.
The expansion of free same-day delivery is just one of many services Amazon is deploying to stay ahead of traditional retailers from Target (TGT) to Walmart (WMT) to Macy’s (M) as those companies redouble efforts to speed up delivery with more distribution facilities and partnerships with delivery companies. And getting members to use Prime more often is key to those efforts.
“As our operational capabilities grow, we will continue to invent and expand delivery options that customers love,” said Greg Greeley, Vice President of Prime, in a statement. Some 1 million items are available for same-day delivery, compared to 30 million if a customers gives Amazon two-days.
Amazon also offers two-hour delivery for Prime members via its Prime Now offering, which is available in 25 cities.
For that $99 per year, Amazon Prime members get access to streamed movies, TV shows, and Amazon’s original productions in addition to free two-day shipping and one-hour delivery on certain orders.