Amazon Launches Project Mercury: A New Era for Same-Day Delivery

Amazon.com Inc has announced an ambitious plan to expand its same-day delivery service through Project Mercury, which could revolutionize the retail landscape in the US and challenge Walmart's dominance. The company aims to increase its same-day fulfillment centers from approximately 85 to over 1,000 by 2031, representing a tenfold growth in its logistics capabilities.

According to Amazon's plans, it will establish hundreds of new same-day fulfillment centers across the US, allowing 80% of its Prime members to access an SSD within a 10-mile radius. This initiative is expected to generate substantial economic value, with forecasts estimating a $7.1 billion impact over the next decade.

The company's current Price-to-Sales (P/S) ratio stands at approximately 3.44x, which is significantly higher than its historical median of ~3.4x. This elevated P/S ratio suggests that the market is pricing in substantial future growth, yet it also indicates that Amazon is not generating positive cash flow at this time.