In an effort to revive its main eCommerce franchise and fend off greater competition, Amazon.com is planning to spend $800 million to reduce delivery times for top customers to one-day.
Analysts at D.A. Davidson wrote in a note to investors, โTo the extent it is able to fulfill this promise or, at least, the perception it is able to do, it will place a lot of pressure on the competition, most of which is still trying to ramp its two-day efforts.โ
Amazon CFO, Brian Olsavsky said faster delivery times will increase the number and types of products that customers are willing to buy from Amazon.
Olsavsky, said, โWe really think itโs going to be groundbreaking for Prime customers. We have the capability because weโve been at this for more than 20 years.โ
Although Olsavsky didnโt set a timeline for the rollout, he said, โWe expect to make steady progress quickly and through the year.โ
