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Amazon to Close Fast Brick-and-Mortar ‘Today’ Delivery Service

Amazon is in the process of discontinuing its service that provided same-day delivery from mall and brick-and-mortar retailers, as reported by CNBC. The company has ceased further development of this service, known as Amazon Today, and plans to phase it out, according to sources familiar with the matter who requested anonymity due to lack of authorization to discuss the details publicly.

The majority of the program is expected to end by December 2, although certain retail partners will be able to continue processing orders via Amazon Today until January 24, as communicated to CNBC by Amazon. A limited number of employees will face layoffs and receive severance packages, while others will be reassigned to different roles within the company. Employees associated with Amazon Today were informed of this decision during a meeting on Monday, where approximately 300 staff members were involved.

The discontinuation of Amazon Today aligns with the company’s ongoing cost-reduction measures. Since 2022, under the leadership of CEO Andy Jassy, Amazon has embarked on a cost-cutting initiative to adapt to rapidly evolving economic conditions. This effort included the largest layoffs in the company’s history, reducing the workforce by over 27,000 positions. Jassy has adopted a more stringent approach towards unproven and expensive projects compared to his predecessor, Jeff Bezos, resulting in the termination of several ventures, such as a telehealth service, a children’s video-calling device, and a mobile Treasure Truck.

Amazon Today, introduced in 2022, allowed retailers participating on the platform to offer rapid delivery services from their physical stores and shopping malls in select urban areas. The company’s contracted Flex drivers, using personal vehicles, collected and delivered packages to customers within hours of order placement. This was part of Amazon’s strategy to expedite online order deliveries, increase sales, and compete with other companies offering fast delivery services, like Instacart and DoorDash.

Retail partners involved in Amazon Today included Office Depot, Staples, Petco, PacSun, GNC, and Fabletics. Amazon is currently working with these partners to ensure a seamless transition as the service winds down, while continuing to focus on and invest in rapid delivery solutions.

The shutdown of Amazon Today was unexpected, especially as the company had been engaging with additional retailers and promoting the service at a recent conference. According to sources, the service incurred higher costs compared to traditional delivery methods, as it was less efficient in terms of package volume for Flex drivers, whose vehicles were not fully utilized on retail delivery routes.

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