Amazon Drops $6.8B on Local Delivery Hubs

Amazon is investing $6.8 billion to build local hubs that will rival Walmart's extensive store network, aiming to provide same-day delivery for over 80% of its Prime members by 2031.

The e-commerce giant plans to expand its hubs from the current 85 locations to over 1,000 across the US, placing fast-moving inventory within a 10-mile radius of these locations.

This move targets Walmart's advantage in having 5,000 stores that serve as fulfillment centers, enabling it to deliver 70% of online orders on the same day.

Amazon is focusing on local inventory for frequently needed items like groceries and household essentials, separating immediate availability from broad product selection.