Amazon Expands Same-Day Delivery Network with Project Mercury
Amazon plans to significantly expand its same-day delivery capabilities through an initiative called Project Mercury. The company aims to add over 1,000 new fulfillment centers in the U.S., increasing from its current 85 locations and positioning a facility within 10 miles of 80% of Prime customers by 2031. This move is intended to close the gap with physical retailers like Walmart, which currently serve 90% of the population within 10 miles using their stores as mini-fulfillment hubs. The expansion will require billions in investment and years to implement but aligns with Amazon's long-term strategy focused on faster delivery. The company expects this initiative could drive more frequent customer visits, higher purchase volumes, and lower delivery costs due to proximity. In 2025 alone, North American sales accounted for nearly 60% of the company’s total revenue. While cloud computing remains a major growth driver—Amazon Web Services (AWS) reported $42 billion in Q2 sales with a year-over-year increase of 37%—investor uncertainty around AI's future has impacted Amazon's stock valuation.
Topics: E-commerce Logistics Retail Competition