Amazon is turning up the heat on delivery speed. The company announced Tuesday that it's expanding its "Amazon Now" service, which promises to deliver groceries, household essentials, and other items in 30 minutes or less across dozens of U.S. cities. The move is part of Amazon's broader strategy to dominate the "instant commerce" space, where speed is the name of the game.
But here's the thing: while Amazon is racing to get packages to your door faster, most shoppers still prefer free standard delivery. According to Amazon, over 95% of consumers choose free shipping over paying extra for speed. So why the big push? Because for those moments when you need something now—think last-minute dinner ingredients or a forgotten birthday gift—speed can be a game-changer.
Udit Madan, Amazon's senior vice president of Worldwide Operations, put it simply: "Amazon Now is for when you need or want the convenience of getting your Amazon order delivered in 30 minutes or less." The service relies on smaller fulfillment centers located closer to customers, allowing Amazon to cut delivery times dramatically.
Amazon's delivery stats are already staggering. In 2025, the company delivered over 13 billion same-day or next-day items globally. In the U.S. alone, more than 8 billion items were delivered quickly, a 30% increase from the previous year. The expansion of Amazon Now is designed to build on that momentum.
But Amazon isn't alone in this race. Walmart (WMT) has been testing new store-based fulfillment systems in Dallas to speed up deliveries, while Target (TGT) is expanding its same-day delivery through the Shipt platform. The entire retail industry is shifting toward instant commerce, where speed is critical for capturing online shoppers.
Still, cost remains a hurdle. Faster delivery often comes with higher logistics costs, and retailers must balance that against consumer demand for free shipping. Amazon's expansion of Amazon Now aims to optimize its logistics network to make speed more cost-effective.
On the analyst front, TD Cowen's John Blackledge reiterated a Buy rating on Amazon with a $350 price target, signaling confidence in the company's strategy. The stock, however, was down 2.19% at $266.08 on Tuesday, reflecting some market jitters.
From a technical perspective, Amazon's stock is trading above its key moving averages, which suggests a longer-term bullish trend. The 20-day SMA is above the 50-day SMA, and the 50-day SMA is above the 200-day SMA—a classic bullish setup. The RSI sits at 59.38, neutral territory, indicating room for upward movement without being overbought. However, the MACD is below its signal line, which could signal a short-term pullback. Key support is at $226.50, with resistance at $278.50. A golden cross occurred in May, adding to the bullish sentiment. Over the past 12 months, Amazon shares have gained 37.17%, reflecting strong momentum.
So, what's the takeaway? Amazon is betting that speed will win over a segment of shoppers willing to pay for convenience, even as most consumers stick with free shipping. The expansion of Amazon Now is a bold move in the instant commerce arms race, and with analysts bullish on the stock, the market seems to be watching closely.
