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Ben Fox Rubin / CNET
An unlimited two-day expedition is probably the most popular benefit of Amazon for its premium members, and it's about to improve again.
The chief financial officer of Amazon, Brian Olsavsky, said Thursday during a call about the results that the company was working to change the two – day shipping program into a shipping day. .
He added that Amazon was already spending a lot to update its infrastructure to make this change, including investments of $ 800 million for the current quarter, starting with North America. The program is expected to speed delivery times for Premium members worldwide, Olsavsky said.
"We are currently working on the evolution of our Prime Shipping program, which has always been a two-day program, to become a one-day shipping program," said Olsavsky Thursday as a result of the publication of the Amazon book. quarterly profit.
"We will build the bulk of this capacity throughout the year, in 2019," he added. "We plan to make steady progress quickly and throughout the year."
The one – day shipping change comes as Amazon faces much stronger competition from competing retailers, including Walmart and Target, who are finally starting to catch up with Amazon 's efforts to offer fast delivery for online shopping. It comes as soon after Amazon has increased the cost of its premium subscription to $ 119 a year, up from $ 20. Faster shipping could encourage customers to stay with Prime.
This announcement comes after Amazon has already added shipments the same day and a day on many of its markets, as well as two-hour shipments through its Prime Now program. In June, the possible forerunner of the one-day shipping plan, Amazon unveiled the Delivery service partners program, which helps entrepreneurs start delivery companies to ship Amazon packages
As part of its infrastructure work, Amazon announced in 2017 its intention to build a new $ 1.49 billion air cargo hub in Kentucky and leases 40 Prime Air cargo aircraft. It has also launched Amazon Flex, a market economy service that allows contractors to deliver Amazon packages, and has already partnered with many small local transportation companies across the country.
Despite all of these extra delivery capabilities, Olsavsky said Thursday that Amazon will have to continue relying on its delivery partners in the future – a nod to longstanding concerns that Amazon would be in direct competition with UPS and FedEx as a delivery provider.
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