Amazon today announced that the e-commerce behemoth was expanding its delivery service to include one or two hour deliveries for Amazon Prime customers (Amazon Prime costs $99 per year) in certain locations.
Our CEO Pat Phelan tested out the service, and it worked beautifully. Using the Prime app, Pat was able to order a plethora of goods that would be delivered very quickly (Pat ordered a Princess Elsa doll from the Disney movie "Frozen"...). The item Pat ordered arrived in about 17 minutes, much quicker than the one hour that we expected. You can also see the delivery being made in real-time within the app. The courier arrived wearing a black jacket with a big "Amazon" logo on the back, just in case you forgot.
There were some hiccups though. Prime Now is free for two hour deliveries and charges $7.99 for a one hour delivery. However, the service also tacks on a $5 tip, so the real cost is actually $13 (the tip can be changed, however).
Also, we lucked out since our headquarters are in the right area. As of now, the service only works in the 10001 area code, but The Consumerist notes that the "company is adding other areas of the city throughout the day."
Amazon's arrival to the fast delivery service market is a bit late. A number of up-and-coming startups like Postmates, Instacart, and WunWun have offered one-hour deliveries for quite some time, and the startups have amassed quite a user base. Not only that, but giants like Google have expanded existing services like Google Shopping Express, which delivers items from chains like Walgreens. Re/Code reported that Google was willing to spend up to $500 million to take on Amazon when it comes to deliveries and shipping.