Amazon’s ‘Prime Now’ Revamps Delivery Status

In an enlarging milieu of shipping and logistics services, with Uber testing its local delivery service, Postmates collaborating with McDonald's and Starbucks and Walmart test running an unlimited and super economical shipping service, Amazon too, is competitively expanding its Prime Now service to offer quick delivery of food from local stores in Manhattan.

Amazon stated that the ramped-up delivery service has started on Thursday in select neighbourhoods and will be spreading through Manhattan in coming weeks.

The ecommerce giant has offered its customers to order groceries, prepared meals and baked goods from D'Agostino, Gourmet Garage and Billy's Bakery through its Prime Now app. The service will soon include Eataly, an Italian food vendor and Westside Food Market.

Two-hour delivery will be free for the Prime members, while one-hour delivery in ‘select zip codes’ will cost $7.99. Prime Now, which offers one-hour delivery on some of Amazon's own products, has plans to expand this one-hour delivery to products from local stores in the whole New York City gradually.

Prime Now was launched in late 2014 under the Amazon Prime service with an annual membership program for $99 which includes free two-day shipping.

Dave Clark, company’s SVP of worldwide operations, informed that in addition to Manhattan, Prime Now is available in other US cities including in Brooklyn, Atlanta, Baltimore, Austin, Dallas and Miami.

However, the expansion of the Prime Now services in cities other than NYC, would face problems with time restraints making it tough to replicate the NYC model as Amazon has been using the pervasive NYC subway system to speedily deliver items across the city.

The sincere efforts of the company are reaping benefits with Amazon Prime’s membership growing gradually. Recent estimates from the CIRP suggest that Amazon Prime has increased its membership base since 2014, recording a 1 million hike and the membership status now stands at 41 million.

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