Amazon Aims to Close Walmart's Proximity Advantage with Same-Day Delivery Expansion

Amazon is planning to expand its same-day delivery network through an internal project called Mercury. The goal of this project is to place inventory within 10 miles of about 80% of Prime members in the US, according to internal planning documents.

Bank of America analysts believe that Amazon's plan is aimed at closing Walmart's long-held proximity advantage. Walmart has a significant head start with its roughly 5,000 stores putting fast delivery within 10 miles of 90% of the US population.

The project's estimated $6.8 billion investment is considered manageable for Amazon. Internal projections forecast that Mercury would turn cash-flow positive by 2030 and generate $7.1 billion in economic value over 10 years.