Dive Brief:
-
Stephenie Landry, Amazon’s vice president for Prime Now, has been handed responsibility for Amazon Fresh (the company’s grocery delivery service) and Amazon Restaurants (its restaurant delivery service), Re/Code reports.
-
Retail Dive’s request for comment wasn’t immediately returned by Amazon, and as of Friday morning no changes were reflected at Landry’s LinkedIn page.
-
She told Re/Code that the e-commerce giant will continue to run the separate delivery services, reflecting the different ways consumers think about delivery through Amazon, according to the report.
Dive Insight:
Amazon is constantly reiterating its own innovations, so a shuffle in some of its delivery operations is hardly a surprise. Landry, who has led Prime Now for more than a decade, is an obvious person to take on other delivery efforts there.
Still, it’s an indication of how dynamic the retail delivery market is at the moment, with cumbersome last-mile practices and steep costs yet rising customer expectations.
Target last week announced the acquisition of same-day delivery startup Shipt, months after its purchase of same-day delivery company Grand Junction. In that time, a slew of other retailers have also announced same-day delivery services or expansions of existing same-day services, including Office Depot, Macy's, Best Buy and Rent the Runway, to name just a few.
Walmart in recent months said it's testing a program where store workers make last-mile deliveries on their way home from work. The retail giant also expanded Uber delivery of grocery orders.
More than half (51%) of retailers say they now offer same-day delivery, up from 16% last year, and within two years 65% plan to offer it, according to a survey from retail management consulting firm BRP. Third-party delivery, through the likes of Uber or Lyft, has also increased, from 20% of retailers offering that last year to 32% doing so this year, according to that report.
While in-store pickup of online orders is also popular, delivery has emerged as critical, according to Howard Davidowitz, chairman of New York City-based retail consulting and investment banking firm Davidowitz & Associates. "This business of picking up in stores is a peanut thing," he told Retail Dive. "If you ask anybody in this business, the name of the game is delivery."