UPDATED 23:46 EST / SEPTEMBER 16 2020

APPS

Amazon to open 1,000 delivery hubs in the US

Amazon.com Inc. is setting itself up to challenge competitor Wal-Mart Stores Inc. even more by opening small delivery hubs throughout the U.S.

Bloomberg reported today that people with familiar with the matter say the company at first will open 1,000 stores in cities dotted all over the country, but that number will increase to 1,500. The aim is to get products to people faster, so fast that online shopping will be similar to physical shopping.

Since the outbreak of COVID-19, Amazon has seen its business go from strength to strength, but the rising number of orders has meant that it hasn’t always been able keep its promise of delivering within two days. The company hired 175,000 additional workers, but it seems that to meet customers’ demands, more hubs are needed. According to Bloomberg, the new Amazon stores are going to pop-up in small neighborhoods previously populated with car dealerships and fast-food joints.

This new move into American suburbia is no doubt a direct challenge to Walmart and Target Corp. Both have stores all over the country and can deliver products the same day they are ordered. Amazon, on the other hand, has warehouses in quiet places in the U.S., but they are often too far from most towns to deliver most products within a day.

It’s also reported that Amazon is turning away from delivery partners, the United Parcel Service Inc. and the U.S. Postal Service, a trend for years now amid constant reports that the company intends to create its own postal service. This year Amazon delivered 67% of its own packages, but next year it should be around 85%.

Amazon hasn’t yet commented on the new expansion but offered a statement. “Amazon’s transportation network is built on a foundation of over 20 years of operations and logistics experience, an unwavering commitment to safety, technological innovation, and talented teams who are obsessed with delivering for our customers,” an Amazon spokeswoman said in a statement to media. “Our dedicated last-mile delivery network just delivered its 10 billionth package since launching over five years ago, and we’re proud to provide a great service for our customers.”

Photo: Christian Harrison/Flickr

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