Amazon’s Prime membership program, which currently serves over 200 million subscribers worldwide at an annual cost of $139, will soon discontinue one of its popular delivery services. The e-commerce giant has announced it will terminate its Amazon Today service, effective January 24, 2025.
The Amazon Today program, which was first launched in 2022, currently enables Prime members to place orders from local retailers through Amazon’s platform and receive same-day delivery or pickup options. The service has partnered with various retailers including GNC, PacSun, Diesel, and SuperDry, who are required to maintain a 99% “Pickup Readiness Rate” by processing orders within an hour of receiving notifications.
Currently, Prime members can access this service free of charge when spending $25 or more on eligible items, with a $2.99 fee applied to orders below this threshold. However, according to an Amazon spokesperson, the decision to end the service comes as the company has observed increasing overlap between Amazon Today and its other rapid delivery offerings.
The spokesperson explained to TheStreet that this move will help streamline customer offerings, noting that most items currently available through Amazon Today will remain accessible through the company’s standard same-day and next-day delivery services. This development will impact Amazon Today employees, who will either face layoffs or be reassigned to different positions within the company.
The announcement follows recent statements from Amazon CEO Andy Jassy, who during an August 1 earnings call, highlighted record-breaking delivery speeds for Prime members. Jassy reported that more than 5 billion units had been delivered either same-day or next-day in the year to date, marking the fastest delivery performance in the company’s history.
The decision aligns with Amazon’s broader strategy to optimize costs while maintaining efficient delivery services. Jassy outlined plans to expand the company’s same-day facility network and regionalize its inbound network, anticipating that improved inventory placement will lead to faster deliveries, more consolidated packaging, and reduced inventory transfers.
These improvements in delivery speed come at a significant time for Amazon, following previous customer criticism regarding delayed same-day and next-day deliveries. The changes reflect Amazon’s ongoing efforts to enhance its delivery infrastructure while maintaining profitability.
The success of Amazon Prime continues to be evident in the company’s financial performance. In the second quarter of 2024, subscription services, which include Prime membership fees, generated approximately $10.8 billion in revenue, representing an 11% increase compared to the same period in the previous year.
Despite discontinuing Amazon Today, Prime members still retain numerous benefits, including free shipping on eligible items, exclusive access to Prime Day deals, and complimentary Grubhub+ membership, among other perks. The company maintains that this change will not significantly impact the overall value proposition of Prime membership, as alternative rapid delivery options remain available.
This strategic decision reflects Amazon’s broader initiative to consolidate its delivery services while maintaining the high-speed delivery standards that Prime members have come to expect. As the company continues to evolve its delivery infrastructure, the focus appears to be on streamlining operations while preserving the core benefits that have made Prime membership attractive to hundreds of millions of customers worldwide.