Amazon delivers within an hour. What is the next step?

Author without image icon
Editorial
22 December 2014
2 min

Amazon has raised the standard for fast delivery again. Online shoppers in New York can expect the delivery driver on their doorstep within an hour. For this service, Amazon deploys bicycle couriers who pick up the goods at local pick-up points. The retailer has invested in these urban pick-up points in recent years to deliver goods to customers so quickly.

To use the delivery service, consumers need to become members of Amazon Prime. Using the app PrimeNow, they can then choose the option of delivery within an hour. This costs around $8. However, the option to have goods delivered within two hours is free. Amazon launched PrimeNow in New York, but will soon roll it out in London as well.

Amazon's service makes us wonder what's next in distribution land. Will 'one-hour delivery' become the new standard? Will all logistics providers have to start complying with this? Now Amazon still uses bicycle couriers to deliver orders on time, in the future drones may take over this service. Amazon does not yet have permission to use the technology commercially, but once such permission is granted, the e-tail giant will be ready to actually deploy the devices.

Maybe 'one-hour-delivery' is not realistic for every retailer, but these developments show that consumers can and will demand more and more. There is much discussion about 'same-day-delivery'. For customers, this would not be the greatest good because they prefer to save on shipping costs, or find it more important that the parcel is delivered when they are at home. But can we expect customers to wait two to three working days for their parcel when it only takes two hours at the competitor's and is just free?

What do you think? Will Amazon, like eBay did before, soon pull the plug on its PrimNow app or does this fast service have the future? Should we ignore this development or will we miss the boat?

Editorial LogistiekProfs