Amazon (AMZN) Builds Out Quick-Delivery Network

The online giant has benefited from subsidies to create jobs

Amazon.com, Inc. (AMZN) is expanding its same-day delivery network across the U.S., allowing customers to receive millions of items the same day they order them. According to the company, it currently offers same-day delivery to more than a dozen metro areas, with Miami, Minneapolis, Atlanta, and more Chicago neighborhoods being the latest additions.

Key Takeaways

  • Amazon is expanding its same-day delivery network in the United States.
  • The online giant has reportedly received nearly $650 million in subsidies from state and local governments in 2021 to build the network.
  • While critics say that such incentives shouldn't go to wealthy firms, this economic development model remains popular across the country.

Expansion of the same-day delivery fulfillment centers around the country has created "hundreds" of new jobs at each facility, according to the company. Amazon also said that the network expansion has enabled different kinds of roles within the company, offering more flexibility for workers. For instance, both full- and part-time fulfillment center employees can choose their own work schedules.

Amazon customers enjoy the obvious benefit of receiving their orders quicker. However, not everything is available for same-day delivery. The company indicates more than 3 million items across a dozen categories—including baby, electronics, pet supplies, and more—can be sent the same day. The new delivery schedule allows customers who place their same-day orders before 5 p.m. to receive them by 10 p.m. that day, with later orders being delivered the following morning.

Amazon Same-Day Order Fulfillment
Place order: Get it:
Midnight - 5 a.m. Same day 7 - 11 a.m.
5 - 10 a.m. Same day 10 a.m. - 3 p.m.
10 a.m. - 1 p.m. Same day 2 - 6 p.m.
1 - 5 p.m. Same day 5 - 10 p.m.
5 - 9:30 p.m. Overnight 4 - 8 a.m.
9:30 p.m. - Midnight Overnight 7 -11 a.m.
Source: Amazon

Amazon noted that more same-day delivery facilities around the country enable an increased number of "localized" deliveries, where products are closer to customers, so the logistics process is shortened. That makes deliveries more environmentally sustainable than when goods are sent from farther away and require more emissions to get to customers.

However, the network's expansion and related benefits are not being enjoyed for free. Per a Financial Times report, Amazon has received nearly $650 million in subsidies from state and local governments in 2021 to build the network. That's according to data from Good Jobs First, an economic development watchdog organization.

According to The Financial Times, Amazon has defended the practice. Statements from the company highlight its job creation record, capital investments, and how several incentives were available to any qualifying company.

American cities have long "rolled out the red carpet" to attract Amazon. The company's search for a new headquarters a few years ago led to 238 cities pitching themselves as the place to be. Amazon was offered tax breaks, an executive lounge (and free parking) at one of the busiest airports in the world, employee relocation reimbursements, and more.

Despite Amazon posting profits for years, Good Jobs First estimates that the company has received at least $4.1 billion in subsidies since 2000. The totality of financial support offered to Amazon and other qualifying firms indicates that this is a popular economic development model across the country.

While there is no denying that the online giant has received significant incentives, Amazon's customers may not be inclined to object because millions of products now get to them within hours instead of days. Similarly, more jobs are likely to please employees and local officials alike.

The Bottom Line

Amazon continues to build out its same-day delivery network across the country. Its customers receive orders quicker, new jobs are being created in communities nationwide, and deliveries are more environmentally sustainable. The cost of building the network has been eased by about an estimated $650 million in local and state government subsidies. While critics say that such incentives shouldn't go to wealthy firms, they continue to be a popular economic development model across the country.

Article Sources

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  1. Amazon. "Faster Same-Day Delivery Expansion Creates New, Flexible Roles Across the U.S." Accessed Oct. 19, 2021.

  2. Financial Times. "Amazon Wins Record US Tax Breaks to Expand Delivery Network."

  3. CBS News. "Amazon HQ2: 20 Finalists Competing to Host New Headquarters." Accessed Oct. 19, 2021.

  4. BuzzFeed News. "Here Are the Most Outrageous Incentives Cities Offered Amazon in Their HQ2 Bids." Accessed Oct. 19, 2021.

  5. Ars Technica. "Amazon Wins Record US Tax Breaks to Expand Delivery Network." Accessed Oct. 19, 2021.