In the never-ending quest for delivery immediacy, grocer Kroger is testing out 30-minute deliveries in its home market of Cincinnati, cutting the promised time from Amazon’s Prime Now in half. Called Kroger Rush, the service costs $5.95 per order, with the first order free, and requires an app download.
Same day delivery
After weeks of concentrating its fire on Amazon, Walmart is now dealing with a flank action from Target as the latter has fully integrated its Shipt same-day delivery service with Target.com. Walmart, for its part, just launched a $98 per year subscription program for same-day grocery delivery, a service that normally costs $9.95 per order.
You just knew Amazon wasn’t going to get shut out of a DOT sanctioned drone delivery pilot program a year ago that let in Google, a FedEx/General Electric/Intel team and Uber, and take it lying down. The ecommerce giant unveiled a bold new delivery system that’s part drone, part aircraft and part robot that uses sensors, AI and ML.
Amazon just turned up the heat in the three-way battle for dominance atop ecommerce sellers, announcing more than 10 million items eligible for its new one-day delivery standard via Prime. This compares with 220,000 items available for free next-day delivery from Walmart, announced in mid-May, and 35,000 from Target ReStock.
While retailers pursue same-day delivery, grocers often complete and ship orders in an hour, while restaurants get even less time. Merchants in food delivery thus have to make instant decisions about the legitimacy of a purchase or risk upsetting their customers. The trick is implementing fraud prevention without ruining the experience.
Firing back at Amazon’s move less than three weeks ago, Walmart is now offering free next-day delivery to customers in Phoenix and Las Vegas, with plans to expand to Southern California within days and 75% of the U.S. population by the end of the year. Walmart’s deal is mostly free: There’s a $35 order value threshold to qualify.
Same-day delivery services startup Dolly has raised $7.5 million in new capital to fund expansion and increase its operational and technical teams, raising its venture funding total to $20 million. An Amazon executive is one of the new investors. Dolly plans to expand to 15-20 new markets this year and uses independent contractors.
No sooner had everyone mostly adjusted to the new normal of two-day delivery across the continental U.S. than Amazon raised the bar yet again, signaling a move to free one-day shipping for its 100 million-plus Prime members. Amazon will be transitioning to one-day Prime delivery throughout 2019, starting in Q2.
FedEx is planning to test delivery robots this summer for customers including Walmart and Pizza Hut, while Target and AutoZone are looking at the capability, according to Reuters. The 10 mph robots would have to be approved by the city of Memphis. This is one innovative way companies are looking to cut last mile costs.