Amazon has launched Project Mercury, a strategic initiative aimed at expanding its same-day delivery infrastructure. The company plans to increase its network of specialized hubs from 85 to over 1,000 by 2031, representing a more than tenfold growth in its same-day delivery footprint.
The project involves an investment of $6,8 billion. The goal is to position fast-moving inventory within 10 miles of 80% of U.S. Prime members. Each hub is expected to stock approximately 90,000 high-velocity products, such as fresh food and household essentials.
This strategy seeks to challenge Walmart’s local delivery advantage. Walmart currently utilizes its 5,000 U.S. stores as fulfillment centers, which handle the last mile for 80% of its eCommerce orders. This network allows Walmart to deliver 70% of online orders on the same day.
Amazon aims to decouple its retail model by separating infinite selection from immediate availability. While national infrastructure handles broad inventory, these new local hubs will focus on high-frequency items to ensure rapid delivery, mirroring the proximity benefits Walmart gains from its physical retail locations.
