|Amazon planning small delivery hubs in suburbs|
BY CELINE CASTRONUOVO
09/16/20 10:11 AM EDT
Amazon is seeking to boost its delivery network by installing 1,000 small delivery hubs in cities and suburbs around the U.S. in an effort to provide same-day delivery services, Bloomberg reported Wednesday.
People familiar with the plans told Bloomberg that the facilities will make online shopping almost as quick as a trip to the store. The move will also help Amazon compete with companies like Walmart and Target, which have already started offering same-day delivery of online orders.
The proposed expansion, which will eventually see a total of about 1,500 Amazon facilities, comes after Amazon faced challenges fulfilling its two-day delivery pledge earlier this year when customers flooded the company with orders amid COVID-19 lockdowns.
Bloomberg reported that while Amazon had previously avoided competing with Walmart and other suburban chain companies, CEO Jeff Bezos is investing billions of dollars in rapid delivery services as the busy holiday season approaches.
Amazon declined to respond to Bloomberg’s questions on the expansion plans but mentioned that the e-commerce company has said its last-mile delivery efforts are meant to supplement, not replace, its long-time partners.
“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," an Amazon spokeswoman told The Hill.
The world’s largest online retailer announced Monday that it would be hiring an additional 100,000 workers. It also announced 33,000 job openings earlier this month, primarily in its corporate and technology divisions.
With a spike in online orders during the coronavirus pandemic, Amazon saw its revenue shoot up by 40 percent in the last quarter and recorded high profits, according to Reuters.