Amazon doubling its same-day delivery network
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Amazon Inc. is upping its investment in its same-day delivery network across the U.S.
The e-commerce giant plans to double the number of the same-day delivery facilities it has "in the coming years," Worldwide Amazon Stores CEO Doug Herrington said in a blog post on Monday.
The company didn't specify how many facilities it has in the U.S. currently, though the figure is reportedly around 50.
Currently, the company offers same-day delivery for Prime members across more than 90 U.S. metro areas, according to Herrington.
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The company's same-day facilities are smaller sites that are "designed for speed with smaller footprints, streamlined conveyors, and picking directly to pack stations," according to Herrington.
Packages on a conveyer belt at an Amazon fulfillment center on Prime Day in Melville, New York, on July 11, 2023. (Photographer: Johnny Milano/Bloomberg via Getty Images / Getty Images)
The average time for products to move through the facility is about 11 minutes, over an hour faster than traditional fulfillment centers.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 197.12 | -1.26 | -0.64% |
The news comes after the company said that it hit its "fastest Prime speeds" ever during the last quarter.
More than half of Prime member orders in the top 60 largest metros in the U.S. arrived on the same or the next day, Herrington said.
An Amazon fulfillment center on Prime Day in Melville, New York, on July 11, 2023. (Photographer: Johnny Milano/Bloomberg via Getty Images / Getty Images)
In total, the company has delivered more than 1.8 billion products to Prime members this year on the same or the next day. That's "four times what we delivered at those speeds by this point in 2019," Herrington added.
The announcement comes just days before the company reports its second-quarter results.
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During the first fiscal quarter of 2023, the company reported stronger-than-expected revenue and profits. However, there was a continued slowdown in its cloud computing unit AWS, which had been facing short-term headwinds as companies become more cautious in their spending amid more uncertainty in the economy, according to CEO Andy Jassy.
The Associated Press contributed to this report.
