For some cities Amazon offers free 2-hour shipping on thousands of items with Prime Now. How do they do that without loosing money ?
If someone with Prime Now orders just one or two items in the list, and Amazon has to go in a van to deliver it they will loose money for sure.
Unless they can put together many orders together, but they may not be able to do all deliveries within 2 hours.
One day delivery in some cities is possible for many items(with warehouse nearby), but 2-hour seems difficult if not impossible.
If someone with Prime Now orders just one or two items in the list, and Amazon has to go in a van to deliver it they will loose money for sure.
Unless they can put together many orders together, but they may not be able to do all deliveries within 2 hours.
One day delivery in some cities is possible for many items(with warehouse nearby), but 2-hour seems difficult if not impossible.