Markets

Amazon Tests Uber-Like Service for Quicker Deliveries

Amazon.com Inc. AMZN ) has been experimenting with drones, taxis and bikes to ensure quicker deliveries across a vast area. It is leaving no stone unturned to make its same-day delivery service a success and in this regard the company is trying out an Uber-like service for faster package delivery.

Uber-Like Service for Delivery

Headquartered in San Francisco, CA, Uber is an app-based transportation company that allows users to order a ride through their smartphone.

To meet the increasing demand, especially during the upcoming holiday season, and avoid any delay, the online retail giant is reportedly testing a service similar to Uber to deliver goods to its customers. This is likely to encourage Prime customers to purchase more items on Amazon during Christmas.

The online retailer will enlist drivers who are at least 21 years old and interested in delivering packages using their own cars. Prior to the appointment, candidates will undergo a complete criminal background check as well as a motor vehicle records review to avoid any regulatory concern. The drivers will be paid $18 to $25 an hour via the new Amazon Flex program.

Reportedly, Amazon will launch this service, on an experimental basis, in Seattle. Later, it will be expanded to more areas in New York such as, Manhattan, Baltimore, Miami, Dallas, Austin, Chicago, Indianapolis, Atlanta and Portland.

Uber has also been expanding its food delivery service UberEATS which allows users to order food from a very limited pre-set menu directly from the app.

Amazon Prime Now

In Dec 2014, Amazon rolled out the Prime Now service in a small area in Manhattan. The one-hour delivery service includes household items, alcoholic beverage and now restaurant food for Seattle customers only. Prime Now members can browse and purchase items through a dedicated app and have the orders delivered in two hours for free or in one hour by paying an additional $7.99. The company offers the Prime Now service in 11 cities across the country with plans to add more cities to the list.

Amazon currently has a Zacks Rank #3 (Hold).

Stocks that Warrant a Look

A couple of better-ranked stocks in the same industry are Stamps.com Inc. STMP , Travelport Worldwide Limited TVPT and Autobytel Inc. ABTL . Both Stamps.com and Travelport Worldwide sport a Zacks Rank #1 (Strong Buy), while Autobytel carries a Zacks Rank #2 (Buy).

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AMAZON.COM INC (AMZN): Free Stock Analysis Report

STAMPS.COM INC (STMP): Free Stock Analysis Report

TRAVELPORT WWD (TVPT): Free Stock Analysis Report

AUTOBYTEL INC (ABTL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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