Amazon Pledges Faster Prime Delivery Worldwide to Stay Ahead of Rivals
Amazon has pledged to slash delivery times for its Prime customers worldwide, aiming to maintain its competitive edge against rivals like Walmart and Target. The e-commerce giant, which reported a soaring first-quarter profit of $3.6bn (£2.8bn), plans to invest $800m (£620m) to achieve this goal.
Amazon's Prime service, offering free delivery and access to its TV shows, has been a key driver of its success. The company aims to reduce delivery times from two days to just one day for US Prime members. This move comes as rivals like Walmart and Target have improved their delivery times, offering two-day shipping on many items.
To stay ahead, Amazon plans to spend $800m (£620m) primarily to shorten delivery times for Prime customers outside the USA, focusing on regions like Europe and Asia. This investment will go towards expanding logistics infrastructure and enhancing last-mile delivery capabilities, ensuring faster and more reliable deliveries. Amazon expects to make 'steady progress' in cutting delivery times this year.
Amazon's first-quarter sales rose 17% to $59.7bn, with expectations for growth between 13% and 20% in the second quarter. The company's Amazon Web Services (AWS) also saw a significant increase, with sales rising 41% to $7.7bn in the first quarter. As Amazon continues to expand and innovate, its commitment to faster delivery times is set to further enhance the customer experience and drive growth.
