Dive Brief:
Amazon announced today that it has launched Prime Now, a one or two-hour delivery service exclusively for its Prime members.
Using the Prime Now app, members can order various toiletries and household items to be delivered for free in two hours, or in one hour for a fee of $7.99.
The service is only available in Manhattan for now, with plans to expand to additional cities in 2015.
Dive Insight:
Amazon is entering a highly competitive on-demand delivery market already populated with startups like Deliv and Postmates. But the infrastructure for Prime Now—at least in Manhattan—seems to be in place. In October, rumors swirled around an Amazon store in New York City when the company rented out space near the Empire State Building. Now, it seems like it will become a fulfillment center of sorts: Amazon stated in a press release that this location will be a hub for these Prime Now orders.
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