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Amazon is terminating a service that facilitated same-day delivery from traditional retail stores and malls, as confirmed by CNBC. The initiative, known as Amazon Today, will see its development discontinued, and plans are in place to begin shutting it down, according to sources familiar with the situation who requested anonymity due to the sensitivity of the information.
The wind-down of Amazon Today is expected to take place primarily by December 2, though select retail partners will still have the option to fulfill orders until January 24, 2025. This transition period aims to create a seamless exit strategy for these retailers.
In conjunction with the service’s closure, there will be a small number of layoffs within Amazon, though the company plans to offer severance packages to affected employees. Others may find opportunities in different roles within the organization. Reports indicate that around 300 individuals were involved with Amazon Today, although the company contests this figure, citing approximately 175 employees in that division.
The decision to shut down Amazon Today aligns with Amazon’s ongoing efforts to streamline operations and reduce costs. Since 2022, under CEO Andy Jassy’s leadership, the company has taken a more stringent approach to its financial strategy, resulting in over 27,000 job cuts as part of the most extensive layoffs in its history. Jassy has been notably decisive in removing unproven and more expensive ventures compared to his predecessor, Jeff Bezos, leading to the cancellation of various projects including a telehealth service and a children’s video-calling device.
Introduced in 2022, Amazon Today aimed to enhance customer service by enabling participating retailers on Amazon to offer quick deliveries straight from their physical stores. Through the program, contracted Amazon Flex drivers would pick up orders and deliver them directly to customers within a matter of hours.
This initiative was part of Amazon’s broader objective to enhance the delivery speed of online orders. The company has been actively expanding its infrastructure to support same-day deliveries, aiming to maintain competitive parity with other delivery services like Instacart and DoorDash, which are also diversifying their offerings beyond food and groceries.
Initially, Amazon Today partnered with several well-known retailers, including Office Depot, Staples, Petco, PacSun, GNC, and athleisure brand Fabletics, founded by actress Kate Hudson. In the wake of its closure, Amazon is committed to assisting these retail partners with the transition process while continuing to focus on fast delivery solutions.
The abrupt decision to discontinue Amazon Today caught some observers by surprise, particularly since Amazon had been actively in the process of onboarding additional retailers, as well as marketing the service at a recent conference. However, it has been noted that the delivery routes associated with Amazon Today were more expensive compared to standard delivery options, as drivers often could not maximize cargo capacity from retail locations, making the program less appealing for Flex drivers.
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