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The
online retailer is expanding Prime Now, its one- and two-hour
service, to Seattle, where the company is headquartered, and
offering alcohol deliveries there.
Amazon Prime, the company's $99 per year shopping membership
program, offers free two-day delivery on millions of items. It
is a key testing ground for the retailer's new services, ranging
from TV and on-demand video to fast delivery.
Amazon has said it has "tens of millions" of Prime subscribers.
Analysts estimate the program to have around 40 million users
worldwide.
The company has steadily expanded Prime Now since it launched
the service in New York City last year. It facilitates
integration of the retailer's grocery delivery service, Amazon
Fresh, which has been slower to expand to new markets.
On-demand grocery delivery is a growing and competitive market
in the United States. Instacart, a grocery delivery company,
announced on Tuesday that it had expanded to Indianapolis, its
17th city. Other startups, like Postmates, which focuses on meal
delivery, also deliver personal care goods and alcohol for
customers using a network of couriers.
Prime Now customers can order using an app available on both iOS
and Android devices. Orders are shipped from smaller warehouses,
or hubs. An Amazon spokeswoman said the company opened two
facilities in Seattle and Kirkland, Washington, to handle Prime
Now deliveries.
(Reporting by Mari Saito; Editing by Dan Grebler)
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