Prime Now is Amazon’s one hour delivery service which people can use to order frozen foods, such as pizza and ice cream, and household cleaning supplies. This service is pushing to eliminate the key advantage of physical retailers because the time that you will spend going to the store might just be longer than the time that Amazon can deliver your orders. The service is now available in 26 markets in just over a year.
With Prime Now, Amazon has gained traction over retailers such as Wal-Mart and Target with no signs of stopping. It’s also possible that the company might take on some share in the convenience store market if they begin to deliver small pack sizes.
In a recent research, Prime Now, though not currently profitable, helps Amazon retain Prime member loyalty and will, with scale, become profitable. Prime also gives the company opportunities to experiment — for example, selling products in smaller pack sizes or offering high-turnaround fresh groceries that would be impossible to sell on Amazon.com.
Credits to www.investors.com for first featuring this article.