E-commerce giant Amazon (AMZN) is ending its same-day delivery service for brick-and-mortar retailers.
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The service, called “Amazon Today,” is being wound down and will cease operations altogether by Dec. 2 of this year, according to the company. About 300 employees were working on Amazon Today, and most of them will be moved to other parts of the company.
Launched in 2022 coming out of the Covid-19 pandemic, Amazon Today allowed retailers who sell on Amazon to offer speedy delivery from their brick-and-mortar stores and shopping mall outlets. Amazon had contracted independent drivers to make the deliveries using their own vehicles. The program was part of Amazon’s push to get online purchases to shoppers quickly.
Retailers that had used the Amazon Today service included Office Depot (ODP) and Petco (WOOF), among others.
Streamlining Operations
Shuttering Amazon Today is the latest move to streamline operations and lower costs at the company. CEO Andy Jassy has been slashing costs since 2022, resulting in more than 25,000 job cuts over the past two years.
Media reports say that Jassy has taken a hardline on unproven and expensive projects as he moves to bolster the company’s quarterly financial results. Other projects that have been cut by Amazon in the last few years include a telehealth service and video-calling feature aimed at children and youth.
Amazon stock has gained 21% so far this year.
Is AMZN Stock a Buy?
Amazon stock has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 46 Buy and two Hold recommendations assigned in the last three months. There are no Sell ratings on the stock. The average AMZN price target of $224.16 implies 21.71% upside from current levels.
