Amazon Expands Same-Day Delivery to All Service Area Zip Codes

There has been recent speculation that minorities have not been treated equally relative to Amazon offering Same-Day Delivery in certain service area zip codes. To stamp out any allegations, Amazon has decided to fix it.

Bloomberg recently reported that Amazon has announced that it will now offer same-day delivery in every zip code within its' service areas. The largest e-retailer in the US has been expanding its' same-day delivery program rapidly in various US markets. It provides the service free to Prime members, which pay a $99 subscription cost per year. This issue arose last month, as the service was being offered in certain areas in Boston, yet not in Roxbury, which was in the center of the city. Service boundaries by Amazon were said to not have to do with race, but rather other factors, such as the concentration of Prime members in each area, proximity to warehouses and the company’s ability to find delivery partners to serve that area.

Amazon made a statement obtained by the caucus and shared it with Bloomberg News, which said, "Very shortly, we will be expanding Prime Same Day Service to every zip code of the 27 cities where Prime Same Day delivery is currently launched. We will further not launch the service in any new regions, until we are able to secure a carrier for every zip code. We are still figuring out the details and procuring last mile delivery for each of these zips, but we should have 100 percent coverage shortly."

It was also mentioned in the article that U.S. Representative George Kenneth Butterfield, a Democrat from North Carolina and chairman of the black caucus, said the group "is anticipating the results of Amazon’s plan to expand its delivery services to previously excluded zip codes." Illinois Congressman Bobby Rush called for an FTC investigation, in addition to speaking about the issue on the House of Representatives' floor. Shortly afterwards, Amazon pledged in a letter to Rush to serve Chicago’s South Side in within weeks.

Same-day delivery is forecasted to reach $987 million by 2019, and it seems that Amazon knows its' potential. Last month, Amazon adding 11 major US cities to its' current free same-day delivery program. Those new cities included Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Tucson, Milwaukee, Nashville, Raleigh, and Richmond. This brought its' total service areas to 27 cities so far, and more than likely, the retailer is far from being done. Many experts believe Amazon's goal is offer free same-day delivery nationwide.

As Amazon continues to outpace its competition, other retailers are implementing same-day delivery in order to keep up. A Same-Day Courier like A-1 Express can partner with any business or retailer to successfully develop last-mile deliveries through the US. The Chicago Courier has the courier expertise, technology and nationwide footprint to perform same-day delivery in various service areas and zip codes. Taking Amazon seriously by engaging in same-day delivery is the wisest move for any big name retailer to make.

Reference: 5.6.16, Bloomberg News, Spencer Soper, Amazon to Fill All Racial Gaps in Same-Day Delivery Service