Amazon is shutting down its same-day delivery service, Amazon Today, which facilitated rapid deliveries from mall and brick-and-mortar retailers, according to information obtained by CNBC. Development on the service has ceased, and the company is set to begin winding it down.
The bulk of the program will be shut down by December 2, though select retail partners will still be able to fulfill orders using Amazon Today until January 24, 2025, Amazon confirmed.
Impact on Amazon Today’s Workforce
The decision affects both employees and retailers. While some workers will be laid off with severance packages, others will be reassigned to different roles within Amazon. There were about 175 employees involved in Amazon Today, though other sources had estimated this number at 300.
The layoffs are part of Amazon’s broader effort to reduce costs, a strategy led by CEO Andy Jassy, who has overseen significant job cuts and project closures since 2022. Over 27,000 positions have been eliminated under his leadership as the company adjusts to shifting economic conditions.
Launched in 2022, Amazon Today allowed certain retailers to offer quick delivery services via Amazon, with packages delivered to customers within hours. Flex drivers, contracted by Amazon, would collect the orders from physical stores and deliver them directly to customers. This service, available in select cities, was part of Amazon’s attempt to compete with other companies offering ultrafast deliveries, such as Instacart and DoorDash. However, Amazon Today proved to be more expensive than traditional delivery methods, as it was less efficient for Flex drivers, whose vehicles typically remained underfilled with these retail deliveries.
Despite the shutdown, Amazon emphasized that it will continue working with its partner retailers to ensure a smooth transition. The company remains committed to fast delivery and is still investing in expanding its same-day delivery infrastructure.
Featured Image courtesy of PATRICK T. FALLON/AFP via Getty Images
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