Amazon has free two hour delivery and paid one hour delivery in several markets

Amazon expanded its one-hour delivery service, Prime Now, to two more markets: the San Francisco Bay Area and San Antonio, Texas. The company had clearly been ramping up operations in California, in preparation to serve the Bay Area and beyond, as it currently has five fulfillment centers in the state, employing over 10,000 individuals in full-time positions. In addition, Amazon has six Prime Now hubs in the state to support this faster delivery service

Available only to Amazon Prime members, Prime Now allows customers to place orders for free two-hour delivery time frames, or it costs $7.99 for one-hour delivery. Members can choose from tens of thousands of items, ranging from household goods and cold groceries to electronics and last-minute gifts.

Amazon says that the service will reach most San Francisco and San Jose neighborhoods, and includes Potrero Hill, Mountain View and Cupertino. The service has expanded to more San Francisco neighborhoods, Palo Alto, and throughout Silicon Valley as Prime Now comes online. Customers who want to see if Prime Now is available in their area can download the dedicated iOS or Android application and enter their zip code.

Prime Now is available elsewhere around the U.S. including Atlanta, Baltimore, Chicago, L.A. (and the Orange County area), Indianapolis, Miami, Minneapolis & St. Paul, NYC, Portland, and Seattle (and Eastside). In some markets, Amazon is testing delivery of other items beyond products, like groceries, hot meals ordered from local restaurants and food trucks, and even beer, wine and liquor. This puts Prime Now in more direct competition with courier businesses like Postmates, grocery delivery services like Instacart, and restaurant delivery services, like UberEATS.

Rollout of one and two hour delivery likely to follow the early Twenty four hour delivery map

Walmart and Amazon are working on product delivery via drones.