Amazon Launches "1-Hour Delivery" Amid Intensifying U.S. E-Commerce Battlefield—Head-to-Head Competition with Walmart

Amazon is pushing delivery speed competition to new heights to directly counter e-commerce pressure from competitors like Walmart.

According to Reuters, Amazon announced on Tuesday the official launch of 1-hour and 3-hour delivery services in multiple U.S. cities, covering major metropolitan areas such as Los Angeles and Chicago, as well as smaller cities like Boise.

The service includes over 90,000 products and is available to both Prime members and non-members with additional charges. Udit Madan, Senior Vice President of Global Operations at Amazon, said the company aims to create more value for Prime members by leveraging its existing operational expertise and delivery network.

This move directly targets Walmart—which relies on its extensive brick-and-mortar store network and has publicly claimed the ability to deliver to 95% of U.S. households within 3 hours.

Meanwhile, instant delivery platforms like Instacart, DoorDash, and Uber Eats are accelerating their expansion, reshaping the competitive landscape of the U.S. fast e-commerce market and continuously pressuring market share for industry players.

Service Details: Over 90,000 products, tiered pricing for additional fees

Amazon states that 3-hour delivery is now available in approximately 2,000 cities and towns across the U.S., while 1-hour delivery covers several hundred areas. Deliverable items include daily necessities, cleaning supplies, over-the-counter medicines, clothing, and toys, with fresh food options available in some regions.

Pricing-wise, Prime members pay an extra $9.99 for 1-hour delivery and $4.99 for 3-hour delivery; non-Prime members pay $19.99 and $14.99, respectively.

To ensure fast delivery performance, Amazon has set up dedicated workstations within existing same-day delivery centers to handle these orders, introduced yellow tags for quick package identification, and updated on-site signage to facilitate efficient sorting by delivery personnel.

On the shopping interface, Amazon added a dedicated entry page where users can filter search results for items available for 1-hour or 3-hour delivery, and they can also check related options via the “getitfast” page.

Historical Background: From two-day to minute-level delivery, a 20-year speed race

Amazon has long pursued faster delivery speeds. In 2005, the company launched free two-day shipping with Prime, and has continued to enhance it. In 2019, the standard was compressed from two days to next-day delivery, and in recent years, Amazon has significantly expanded its same-day delivery coverage, often completing deliveries within hours.

In the ultra-fast delivery space, Amazon has experimented multiple times over the years with mixed results. In 2021, the company shut down its standalone Prime Now fast delivery service; in 2024, a service promising rapid delivery from malls and brick-and-mortar retailers was also discontinued.

Amazon’s “Amazon Now” project is still ongoing—focused on delivering daily essentials and fresh food within 30 minutes. It is currently piloting in Seattle, Philadelphia, and international markets including the UAE, India, Brazil, and Mexico.

Additionally, Amazon has been developing drone delivery for over a decade, initially testing in two small markets, and now expanding to multiple cities. Madan stated: “Twenty years after launching Prime, we continue to innovate to make delivery faster while maintaining Amazon’s low prices and wide selection.”

Competitive Pressure: Walmart leads, instant delivery platforms accelerate

Amazon’s speed-up is a direct response to the increasingly fierce competition in the U.S. quick delivery market. Walmart leverages its nationwide network of physical stores, creating a unique geographic advantage in delivery times, with the ability to reach 95% of U.S. households within 3 hours as a core competitive edge against Amazon.

On a broader market level, fast commerce platforms like Instacart, DoorDash, and Uber Eats are partnering with more retailers to extend instant delivery beyond groceries, further narrowing Amazon’s differentiation space.

Amazon states that in the coming months, it plans to expand its 1-hour and 3-hour delivery services to more regions. This expansion relies on its existing same-day delivery network, reflecting a strategic move to upgrade current infrastructure to higher speed standards.

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