Amazon Dives into Neighborhood Delivery with $6.8 Billion Project Mercury
Amazon is planning to build over 1,000 same-day delivery hubs across the US by 2031 as part of its Project Mercury initiative. This expansion will give Amazon a significant boost in same-day delivery capabilities and place fast-delivery capacity within 10 miles of 80% of U.S. Prime members.
The goal is to replicate Walmart's local delivery edge, which is made possible by the retailer's extensive network of physical stores across the country. Amazon's hubs will stock around 90,000 high-velocity products, including fresh food and household essentials, to meet the immediate needs of customers.
Walmart currently has over 5,000 stores in the US, with locations within 10 miles of about 90% of the population. These stores serve as distributed fulfillment infrastructure, handling the last mile for 80% of Walmart's eCommerce orders and all of its fast deliveries.