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Amazon Unveils One-Hour Delivery Service
- redgrange 12y agonine days ago: https://news.ycombinator.com/item?id=8720898 https://news.ycombinator.com/item?id=8720898
- jtchang 12y agoI'm pretty sure the logistics of 1 hour delivery can get pretty insane. However what I am really looking forward to is real time delivery anywhere. And how about returns? Can I return stuff in one hour too?
- ovi256 12y agoWhat do you mean by real time delivery ? Instant delivery ? Real time delivery tracking ? For Amazon Prime users, I could very well see returns piggybacking on deliveries - the delivery courier would simply pick up the return.
- iTrollFreely 12y agoi'm just a dozen blocks away and the app is currently telling me i'm outside the delivery area.... i guess the delivery radius is fairly small, in which case 1 hour delivery by bike messenger can't be that bad.
- ComputerGuru 12y agoWhy would you want to? You can get the replacement or alternative products, and every front to boot, and then mail it back within 30 days.
- jcr 12y agoJust as Amazon is trying to use 1 hour delivery to compete better against brick-and-mortar companies, Google is trying to help the brick-and-mortar companies compete with Amazon by providing a competing delivery service called "Google Express" (previously called "Google Shopping Express") [1]. It's been mentioned a few times on hn [2,3]. [1] https://www.google.com/shopping/express/ https://www.google.com/shopping/express/ [2] https://news.ycombinator.com/item?id=8037108 https://news.ycombinator.com/item?id=8037108 [3] https://news.ycombinator.com/item?id=8452337 https://news.ycombinator.com/item?id=8452337
- jmathai 12y ago> Google is trying to help the brick-and-mortar companies compete with Amazon I'm not sure that wording is accurate. Google is leveraging the brick-and-mortar companies to compete with Amazon and collect more data about its users. Arguably some of the most valuable data they could get; spending and buying habits. I doubt Target is thrilled that Google is looking to inject themselves as a middleman between them and their customers. Target has historically leveraged customer buying habits pretty aggressively [1]. I'd be surprised if their execs aren't frantically trying to figure out how to keep Google from "helping" them compete with Amazon. [1] http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/ http://www.forbes.com/sites/kashmirhill/2012/02/16/how-targe...
- free2rhyme214 12y agoExactly. Google isn't trying to help anyone but themselves, that's business 101. Just like Instacart is helping themselves by leveraging Whole Food's inability to delivery groceries to customers.
- notatoad 12y agoIt'll be pretty easy for target to prevent google from helping them, they can just decline to participate in the program. They are participants though, which should tell you something about how target actually feels about the program. And they don't lose any customer habit data, as customers still use their loyalty cards through Google Express. Almost all of Google's profit right now is derived from B2B relationships. Providing services to other businesses is what they do. Yes, they make a good profit while they're doing it, but to suggest the business who are google's customers don't see any benefit from it is silly.
- jmathai 12y agoValid point. I'm not sure what "participate" really means though. Do Google Express customers have to provide their loyalty cards? Does Target get all of the data they'd get if the customer shopped in store or through their own delivery service? It would be silly to imply that Google's customers don't see any benefit as they're obviously getting some revenue and data. But it would be similarly silly to imply that Target participating in the program doesn't mean they're concerned about it and not looking for ways to handle the customer's experience end to end.
- shalbert 12y agoHow can they get to places within an hour and make a worthwhile margin of profit?
- cshenoy 12y agoThey're charging $7.99 for one-hour delivery. That's about on-par with on-demand courier fees that I've seen in NYC. Presumably the two-hour free delivery will be phased out once they've reached some metric.
- discodave 12y agoIf we assume that a) the 1h delivery is break even for them and 2) the 2h delivery would allow the courier to do a couple of extra deliveries on the same trip, then I think the per item cost for 2h delivery could be only a couple of dollars, making it competitive with UPS and thus maybe free for prime members indefinitely.
- smackfu 12y ago$7.99 + you need to have $99 Prime.
- bengali3 12y ago>make a worthwhile margin of profit? If Dominos can do it for pizzas, amazon can do it for much bigger ticket items. PLUS they are not incurring the cost of shipping the item to a prime member. Right now for every physical good prime purchase they spend money on shipping. Also see: Amazon is not worried about short term profit [1] They have probably planned to not profit for a while in exchange for increased cashflow. Again for Amazon, profit isn't first, the customer is. [1] http://www.businessinsider.com/amazons-jeff-bezos-on-profits-failure-succession-big-bets-2014-12 http://www.businessinsider.com/amazons-jeff-bezos-on-profits...
- saosebastiao 12y agoDominos can do it for Pizzas because the profit margin on Pizzas is about as close to 100% as you can get, and delivery-person pay is about as low as you can get, combined with subsidy via tips. A $20 pizza will have a higher total gross margin than a $100 anything-retail. Amazon is going to lose money on this, and it will probably only ever be feasible (even as a net loss) in a handful of zip codes in the US.
- mrfusion 12y agoWouldn't four hours or anything same day be just as good? Why not save some costs there?
- smackfu 12y agoI think most purchases break down into "I need it now" vs. "I need it in a day or two." Currently, Amazon can't get the first category, so it's served by local stores. And four-hour or same-day delivery doesn't really address that market either.
- function_seven 12y agoActaully, I often need something "before tomorrow". Unless I wait until 9PM to realize that, a four-hour delivery time would be perfect for me.
- driverdan 12y agoThey already have this service, Amazon Fresh.
- quackware 12y agoUnfortunately only in the 10001 zip code.
- smackfu 12y agoI'm more impressed that the two-hour delivery is free.
- Dirlewanger 12y agoCan't wait to see how awesome the work environment will be for these couriers! Probably much like Uber's drivers: under constant pressure to meet a quota (in this case, probably minimizing the number of missed 1 hour marks), and if you're injured/hit/cause an accident, it's on you and the employer will be nowhere to be found.
- gfodor 12y agoAnd like uber drivers, one day you will wake up and find your job replaced by a robot.
- Shivetya 12y agoor blocked by a politician who is merely showing concern for oppressed workers, small business, and of course for the children
- digikata 12y agoMore like Amazon's warehouse workers with constant countdown clocks, except on the open road. Which sounds like a potential hazard for other drivers.
- driverdan 12y agoIf they don't like it they can quit.
- Nacraile 12y agoWe tech folk would do well to remember that relatively few people have the good fortune of working in a labour market where demand outstrips supply. Being able to just quit with a comfortable buffer in the savings account and confidence that a better option is just around the corner is a rare privilege. In a market where there is an oversupply of labour, a free-market race to the bottom results in significant suffering over a large number of workers while benefitting a small number of the already-wealthy. It is difficult to view this as a socially desirable outcome.
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- marban 12y agoAre they outsourcing the couriers in this case? The promo video looks like as if these guys are sourced straight from a Chrome Industries / Rapha commercial.
- nateberkopec 12y agoThis headline could've read: "Amazon relaunches Webvan". Very interesting how ideas from the first bubble re: brick-and-mortar are coming back.
- lotharbot 12y agoWebvan wasn't the first ever grocery delivery service. Their failure doesn't make in non-viable, it just means they didn't do it in a viable way. I still see the dairy truck and the Schwan's truck in my neighborhood from time to time. They're not exactly the same thing, but they've proven long-term sustainability for some parts of the market. I also see home delivery trucks for King Soopers (Kroger) and Wal*Mart in my area.
- mooreds 12y agoIt's hard for me to see how this doesn't hurt local vendors badly. Of course, it depends on what the the 25,000 items are, but that was one of the key differentiators between Amazon and local stores--if you needed something and you needed it now, the local store was the only option (things like cabling for a new TV, gifts for a party that night, etc). Now, for prime members in NYC at least, Amazon is a viable option. What other moats do local stores have? Amazon wins on: * selection * cost * convenience * reputation * knowledge (this depends on the local store) What does the local store win on? * feel good factor (supporting local business and employment) * hold the item in your hand (not sure there is one word for it in English, but the Germans probably have one) It's a draw on * I need it now Interesting times, indeed.
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- gdulli 12y agoHonestly, I like getting out of the house and going to the store. Not every day, I do my share of buying online. But there are plenty of times I'd rather go out and I'm not tempted to sit around and wait to be brought something, even if it could come within the hour. I often do reverse show-rooming. I'll browse through a real bookstore, which is fun, but I'll look up reviews on mobile and factor that into my buying decisions.
- hnnewguy 12y ago>I'll browse through a real bookstore, which is fun, but I'll look up reviews on mobile and factor that into my buying decisions. This is my use-case. For my small corner of the world, Amazon has been a boon to used-book stores (even regional chains), as it is now easier to see what I'm buying.
- ics 12y agoIt's a draw on cost too, as Prime prices are sometimes inflated beyond other stores or even the regular retail price. As for convenience, those without a doorman always think twice before placing orders online.
- free2rhyme214 12y agoWhat most don't realize is that Amazon is taking on Fedex, UPS, and the USPS by doing it themselves for profit. This is actually very smart if you can solve the logistics problem long term because this model can be leveraged in many other cities.
- Instacartlove 12y agoHaving the ability to pickup and deliver from multiple locations throughout a city like Postmates or Instacart does is a huge advantage. At least for a one hour delivery. Density of drivers in a city is an important factor as well. If you can route a driver to a location nearby instead of a single warehouse you can be more efficient. Instacart and Postmates also both have high frequency categories that they can use to leverage less frequent items, e.g essentials over time and potentially at lower costs.
- morgante 12y agoI just placed an order with this new service (some HDMI cables for our office). The selection is pretty decent, definitely comparable to Google Shopping Express. One very odd note though: they ask for a variable tip to the delivery courier (something Google doesn't do). So even for "free" 2 hour delivery, you're paying for delivery. While I see how this is better for the courier, I think it's a big mistake—people hate navigating the social dilemma of how to tip properly, and solving social dilemmas is a key advantage of digital services.
- Chevalier 12y agoAgreed on all counts. At least build the tip into the cost, like the ride-sharing services do. I'd vastly prefer doing away with tips altogether and just paying a living wage, but the least these services can do is to spare me extra work.
- walterbell 12y agoFor personal deliveries, tip with cash, set online tip to zero. For corporate deliveries, tip online according to corporate policy, no personal decision needed.
- slayed0 12y agoRegarding your first point, changing the tipping medium does not solve the underlying problem. Tipping sucks.
- walterbell 12y agoHave you experienced customer service in countries where there is no tipping? It is often entertaining and involves unpredictable "extra work". Perhaps digital reputation systems will provide a stick to replace the carrot of tipping, unless labor laws evolve to impose Fair Reporting on mobile logistics data.
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- Rygu 12y agoJust heard about Shyp yesterday. Seems like it's the same idea but selling the concept of regular people helping each other for a more personal service (like Uber, Lyft). I kind of like that approach. http://www.shyp.com/heroes http://www.shyp.com/heroes
- BrandonY 12y agoSomewhere, Kozmo.com CEO Joseph Park is reminding someone that this is Jeff Bezos's second attempt at one hour delivery, and that he was already doing this for Bezos back in the 20th century.
- mooreds 12y agoHe's actually at Forever 21, so I assume he's reminding them: https://www.linkedin.com/pub/joseph-park/3/710/a3b https://www.linkedin.com/pub/joseph-park/3/710/a3b
- comrade1 12y agoTime to order KY lubricant and the Sports Illustrated swimsuit edition delivered to a bathroom stall at SFO... (if you don't remember Kozmo, this was done by a reporter during the last dotcom boom/bust as a joke)
- guelo 12y agoWhat I don't understand about the big retailers is why they haven't been doing something similar all along to compete with Amazon. Amazon has been building warehouses all across the country near cities to reduce shipping times. But the retailers already have what amounts to hundreds of warehouses at every population center, plus the inventory management systems. Why haven't they put their inventories online and offered same day delivery to neutralize Amazon?
- mynameishere 12y agoNo kidding. The pizza delivery model would seem a no-brainer. You simply have a few employees who know where everything in the store is (and can probably fetch anything 10 times faster than a normal customer) and then batch them out to drivers. It seems like Walmart could service 100 million people this way (with their entire inventory) just like Domino's et al have been for decades. It's so obvious that I'm guessing they've done the math and it doesn't work.
- serge2k 12y agoAmazon has their entire infrastructure focused on rapid delivery of small amounts of stuff to a customer. Big retailers are focused on maintaining optimum levels of inventory at their big box stores all over the country. It's a different problem.
- curiously 12y agoMeanwhile in Canada...
- zipfle 12y agoI find it really weird that on HN, which in general I find to be a pro-capitalist, let-the-market-sort-it-out kind of place, so many commenters seem irked at businesses 'being cheap' by offloading waitstaff salaries onto tips. I'm just a simple country hyperchicken, but isn't this that 'maximizing shareholder value' stuff I've been hearing so much about?
- olalonde 12y agoFirst, "maximising shareholder value" is essentially a government regulation which many would argue is not "capitalistic" in the classic sense. Second, one can both support capitalism as a system and dislike some business practices. Third, there is no guarantee that offloading salaries onto tips will result in maximising shareholder value since it could result in less customers using the service.
- benatkin 12y agoAmazon could just have OnTrac create a product called One-Hour Delivery, and have OnTrac claim that they tried to deliver but that the recipients weren't home.
- tapatio 12y agoI'm guessing this is not good for https://www.instacart.com https://www.instacart.com?