Amazon to Use Bikes for 1-Hour Delivery in Manhattan - Analyst Blog

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According to The Wall Street Journal , Inc. ( AMZN ) plans to use bike messengers to offer deliveries in Manhattan, within an hour.

Amazon Prime Now

The super-quick service is called Amazon Prime Now and is the e-commerce giant's latest endeavor to take on brick-and-mortar retailers.

The Wall Street Journal reported that Amazon has been experimenting with messengers from at least three courier services to single out the most efficient option for its delivery fleet.

As part of the experiment, the bike messengers are provided with an address and asked to bike there within a fixed time. Once they reach the destination, they are required to take a photograph of the building's address.

Once this is complete, the messengers return to the ground floor of the Amazon building, which is referred to as "the base" by them.

According to reports, the base consists of a lounge with foosball, pool and air hockey tables; an arcade; and other amenities for messengers to hang out between deliveries.

The messengers are paid approximately $15 per hour and work in eight-hour shifts.

Amazon's Extreme Delivery Options

Amazon has been trying all means to get packages delivered faster. From drones to taxis to bikes, Amazon has done it all.

In November, according to media reports, the online giant tested package delivery by licensed cabs in San Francisco and Los Angeles via the taxi-hailing mobile app Flywheel.

Amazon last year announced its plans to use aerial delivery drones as part of the Prime Air service. In July this year, Amazon asked for permission from the FAA to test drones in outdoor areas near Seattle. But the FAA has been slow to give its approval.

The latest news is that Amazon plans to shift more of its drone testing outside the U.S. borders unless it gets quick permission from regulators in the country to conduct outdoor trials.

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

Better-ranked stocks in this industry include Geeknet, Inc. ( GKNT ), Mercadolibre, Inc. ( MELI ) and Solutions, Inc. ( OSTK ). While Geeknet sports a Zacks Rank #1 (Strong Buy), Mercadolibre and carry a Zacks Rank #2 (Buy).

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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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