Amazon and Walmart Race for 30-Minute Delivery: Who Will Win?

UPDATE: The ultrafast delivery battle intensifies as Amazon and Walmart ramp up efforts to dominate the market with 30-minute delivery. Just last week, Amazon announced testing this rapid service in Seattle and Philadelphia, while Walmart celebrated a 10-minute delivery of a Black Friday order and is expanding its drone service to the Atlanta area.

This race is not just about speed; it’s a strategic move to capture a growing consumer demand for immediacy in online shopping. Retail experts debate whether this ambitious push can succeed where previous ultrafast delivery companies have faltered.

As Amazon and Walmart pour significant resources into their delivery infrastructures, questions arise: Is 30-minute delivery a groundbreaking innovation or an overhyped promise? Business Insider’s senior retail reporters, Dominick Reuter and Alex Bitter, weigh in on this critical issue.

Dominick asserts that “30-minute delivery is the future,” suggesting it could enhance customer relationships if executed effectively. In contrast, Alex argues that the fundamentals for success are lacking. “Unless there’s something we’re not seeing, I don’t understand why Amazon is pursuing this,” he states.

The ultrafast delivery market has seen its share of failures. Startups like Gorillas and Getir attempted similar models, but many have either closed or scaled back significantly. Grocery delivery, already a low-margin business, faces further profitability challenges with such rapid fulfillment.

However, Dominick believes the scale of operations is crucial. “The largest players have a chance at making this work,” he explains, noting that both Amazon and Walmart possess extensive inventories to support the speed of delivery. He highlights successes in markets like China and India, emphasizing that the key challenge in the U.S. is suburban logistics.

Despite Amazon’s existing fast delivery options, Alex questions if adding a 30-minute service is necessary. He points out that Amazon already offers quick delivery from Amazon Fresh and Whole Foods, suggesting an oversaturation of grocery services.

As Walmart and Target leverage their physical store footprints—4,600 and 2,000 locations respectively—Dominick argues that such advantages could help them succeed in ultrafast delivery. “Amazon needs to focus on increasing its store count and ensuring customers rely on its exclusive products,” he adds.

On the other hand, Alex warns that delivering to smaller towns and suburbs may pose challenges. “Many consumers prefer driving to stores,” he notes, which could undermine the viability of 30-minute delivery in less populated areas.

Yet, Dominick sees ultrafast delivery as a potential boost to Amazon and Walmart’s marketplace strategies. “When customers need something urgently, it opens up opportunities for later purchases,” he explains, suggesting that this model could drive consumer traffic to their apps.

As the competition heats up, the success of Amazon and Walmart in the ultrafast delivery sector remains uncertain. The coming months will reveal whether their ambitious plans can transform the grocery landscape and meet the immediate needs of consumers.

Stay tuned for more updates as this story develops, and consider how these changes may impact your shopping experience.