Amazon.com, Inc. (AMZN)’s One Hour Delivery Dream in the Making

As part of his documentary on Amazon.com, Inc. (NASDAQ:AMZN) called ‘Amazon Rising,’ CNBC’s David Faber had interviewed Nadia Shouraboura, who is the Founder and CEO of Hointer (an apparel store for men) and also a former Amazon executive.

Speaking on the vision for the speedy delivery of items ordered online, Shouraboura said, “I think the true vision is one hour.” Shouraboura statement was the result of the growing anxiety among consumers to get their items delivered fast and, as a result, there is also a growing interest among online retailers to outrun each other in terms of competition and capture a larger slice of the constantly growing e-commerce industry.

The anchors for CNBC’s ‘Squawk Alley,’ discussed as to how Amazon.com, Inc. (NASDAQ:AMZN) is going to make the ‘One-hour delivery’ operational. The most important technology that Amazon is betting right now on is ‘drones’ (small unmanned aerial vehicles). Amazon is testing drones for delivery and has said that it can deliver packages weighing five pounds using drones.

As nearly 86% of Amazon.com, Inc. (NASDAQ:AMZN) delivery packages are below 86 pounds, the drone technology can prove to be very helpful in making one hour or half hour deliveries possible.

Currently, Amazon has facility to provide same day delivery. Meanwhile, its competitor eBay Inc. (NASDAQ:EBAY) has already launched a one hour delivery service in 2013 which can be accessed using an eBay app called ‘eBay Now.’

As part of this service, the app will help you find an item at a store nearest to you which include Target Corporation (NYSE:TGT), Macy’s Inc. (NYSE:M) & Best Buy Co. Inc. (NYSE:BBY). Once you select and pay for the item, an eBay Now ‘valet’ will deliver the same within an hour to you by a bicycle. The service is available for a flat delivery charge of $5.

Unlike eBay, Amazon.com, Inc. (NASDAQ:AMZN) has plans to introduce half-hour delivery through drones that can carry packages up to 10 miles and is in the process of clearing regulatory hurdles.

Disclosure: none