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Amazon is reportedly taking aim at Walmart's greatest strength by establishing a fleet of 1,000 delivery hubs

Sep 17, 2020, 03:53 IST
Business Insider
Amazon and Walmart are battling over delivery.ANGELA WEISS/AFP via Getty Images
  • Amazon plans to open around 1,000 small-format delivery hubs across the US, according to a report from Bloomberg.
  • "Our dedicated last-mile delivery network just delivered its 10 billionth package since launching over five years ago, and we're proud to provide a great service for our customers," an Amazon spokesperson told Business Insider.
  • The reported plans come amidst the e-commerce giant's ongoing workforce expansion.
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Amazon's latest barrage against brick-and-mortar rival Walmart is taking shape in the form of more than 1,000 small delivery hubs launching across the US.

According to a report from Bloomberg, the tech giant is looking to expedite consumers' online shopping experiences by opening warehouses that should help the e-commerce giant improve delivery times. The company ultimately hopes to open around 1,500 hubs each in suburbs and cities across the country in the future.

The move also comes as the shipping wars between Amazon and major competitors like Walmart continue to heat up.

While Amazon is an e-commerce native, Walmart has long held a key advantage in the form of its store footprint. As of 2019, 90% of US residents live within 10 miles of a Walmart, allowing the Arkansas-based retailer to convert its stores into fulfillment centers. Walmart has also launched its own Amazon Prime rival — Walmart Plus — on Tuesday.

Amazon, in the meantime, has continued to expand both its workforce and fleet of fulfillment centers to keep up with its exponential growth in online sales amid the pandemic.

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In July, Amazon CEO Jeff Bezos confirmed that the company directly employed around a million people, according to MarketWatch. To keep up its pace of growth, Amazon has recently offered regional sign-on bonuses of $1,000 and engaged in sweeping hiring sprees. Meanwhile, the company has made incursions into the brick-and-mortar world of retail, even converting Ohio's infamous dead Rolling Acres Mall to a robotics sortable facility.

"Our dedicated last-mile delivery network just delivered its 10 billionth package since launching over five years ago, and we're proud to provide a great service for our customers," an Amazon spokesperson told Business Insider.

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