The media released information according to which Amazon is shutting down a service that offers same-day delivery from mall and brick-and-mortar retailers.
Journalists, citing insiders who used the right of anonymity, claim that the mentioned e-commerce giant, which is the owner of the best American delivery service, has stopped any new development of its Amazon Today platform. Media informants also said that the company will start to wind down the specified platform.
The bulk of Amazon Today will be shut down by December 2nd. At the same time, some retail partners of the e-commerce giant will be able to fulfill orders with the mentioned platform until January 24. Amazon shared this information with journalists.
A small amount of employees will be laid off and they will be given severance pay. At the same time, some of the employees will be transitioned to other positions within the company.
According to media reports, Amazon Today employees learned the mentioned news at a meeting last Monday, October 21. Some of them were informed about the upcoming layoffs. Insiders report that the number of Amazon Today employees is about 300 people. The closure of this service is the latest example of the implementation of the e-commerce giant’s efforts to cut costs.
Amazon chief executive officer Andy Jassy has been running a cost-cutting campaign since 2022. The corresponding efforts aim to ensure that the configuration of the e-commerce giant’s business is more in line with the realities of macroeconomic conditions, which are characterized by frequent changes. Starting in 2022 and until the end of 2024, the company initiated the largest layoffs in its history. The result of the implementation of the relevant solutions was the cutting of more than 27,000 jobs.
Andy Jassy takes a tough stance on the e-commerce giant’s unproven and expensive projects. In the context of the perception of corresponding aspects of the company’s activities, he demonstrates a greater determination to abandon initiatives with dubious or uncertain prospects than his predecessor at the head of Amazon, who is Jeff Bezos.
Under the leadership of Andy Jassy, the e-commerce giant has implemented several projects, including a telehealth service, a video calling device for children, and a roving Treasure Truck.
Amazon Today was launched in 2022. This service provides retailers selling on the e-commerce giant ecosystem with the opportunity to offer speedy delivery from their brick-and-mortar stores and shopping malls in some cities. Amazon drivers, who work under contract with Flex and deliver in their own vehicles, fetch the packages and drop them at customers’ doorsteps within a few hours after placing orders.
A kind of functional purpose of Amazon Today’s existence was to speed up the process of delivering online purchases to customers. The e-commerce giant continues to add more facilities focused on same-day deliveries in a bid. In this case, the company strives to increase sales and strengthen its competitiveness in the ultrafast delivery area. In the relevant market, the main competitors of the e-commerce giant are Instacart and DoorDash. These companies have expanded beyond the categories of food and groceries, starting a history of presence in the retail sector.
Amazon Today had signed up with several retailers, including Office Depot, Staples, Petco, PacSun, vitamin and dietary supplement chain GNC, and Fabletics, the athletic wear brand owned by actress Kate Hudson. The e-commerce giant is working with the retailers partners it signed up for the service to ensure a smooth transition for them.
It is also worth noting that Amazon continues to prioritize fast delivery and invest in the appropriate area of its business.
The decision to shutter Amazon Today can be described as a surprise. The corresponding perception is that the e-commerce giant was in the process of onboarding other retailers.
The media, citing insiders, published information that Amazon Today is a service that is more expensive than traditional delivery routes, providing that Flex drivers can fill their vehicles with packages from the warehouses of the e-commerce giant.
As we have reported earlier, Amazon Invests Another $2.1 Billion in Its Delivery Service Partner.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
