Amazon’s $3.99 30-Minute Delivery Expands to 10 Cities, Pressures Walmart
WMT•Amazon is rolling out its Amazon Now 30-minute delivery service to 10 U.S. cities, charging Prime members $3.99 and non-Prime customers $13.99 per order. Rising gasoline costs are squeezing lower-income consumers’ budgets, potentially reducing in-store visits and discretionary spending at Walmart locations.
1. Amazon Now Service Expansion
Amazon has extended its Amazon Now 30-minute delivery to 10 major U.S. markets. The service is live in Atlanta, Dallas-Fort Worth, Philadelphia and Seattle, with launches planned for Austin, Houston, Minneapolis, Orlando, Phoenix, Denver and Oklahoma City.
2. Intensified Delivery Competition for Walmart
Prime members pay $3.99 per ultra-fast delivery while non-Prime customers incur a $13.99 fee, undercutting Walmart’s standard same-day offerings. This aggressive pricing and speed threaten to erode Walmart’s grocery and general merchandise market share in urban areas.
3. Lower-Income Consumers Under Fuel Price Pressures
Spiking gasoline prices are straining budgets for Walmart’s core lower-income shoppers, forcing cutbacks on non-essential purchases. Reduced disposable income and higher commuting costs may lead to fewer store visits and lower basket sizes.
