Amazon Stock (AMZN) Jumps on a Bid to Better Compete with Walmart’s (WMT) Delivery Speeds

Amazon AMZN +1.06% ▲ stock rallied on Tuesday after the e-commerce company announced faster delivery times in an effort to better compete with retail giant Walmart (WMT). Customers in select cities can now expect deliveries from Amazon to be completed even faster with one-hour and three-hour delivery options.

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Amazon noted that this expansion brings one-hour delivery to major metropolitan areas, such as Los Angeles, Chicago, and Washington, D.C., as well as smaller cities, like Des Moines, Iowa, Boise, Idaho, and American Fork, Utah. The three-hour delivery option is available in these locations too, and in more than 2,000 cities and towns across the U.S.

Amazon highlighted a wide array of some 90,000 items available for one- and three-hour delivery, including daily essentials and perishable goods. Prime members also get discounted delivery prices, only paying $9.99 for one-hour delivery and $4.99 for three-hour delivery. Without a Prime subscription, customers will pay $19.99 for one-hour delivery and $14.99 for three-hour delivery.

Amazon Needs Better Delivery Options to Challenge Walmart

The biggest hurdle that Amazon faces in its battle with Walmart is infrastructure. While the company has distribution centers across the country, these locations are still more spread out than Walmart’s stores. This puts it in a tough spot compared to Walmart, which leverages its retail footprint as infrastructure for its own e-commerce options.

Amazon also has to compete with Walmart’s delivery speeds. Just like Amazon, Walmart offers delivery within an hour, as well as various other speedy options. Customers who are subscribed to Walmart+ also get discounted delivery options that are comparable to those offered to Amazon’s Prime members.

AMZN & WMT Stock Movements Today

Amazon stock was up 0.88% on Tuesday but was still down 7.46% year-to-date. The shares have also rallied 9.81% over the past 12 months.

Walmart stock saw a slight 0.56% gain today and has rallied 13.72% year-to-date. The shares have climbed 47.2% over the past 12 months.

AMZN vs. WMT Stock: Which Retailer Has the Better Standing With Analysts?

Turning to the TipRanks stock comparison tool, traders can see which of these retail giants analysts favor. Both Amazon and Walmart have analysts’ consensus Strong Buy ratings. However, the upside potential for AMZN stock is much higher at 30.74%, compared to 10.04% for WMT.

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