Amazon Tests New Rapid Delivery Hub in Seattle

Amazon is piloting a new rapid delivery concept at a shuttered retail site in Seattle’s Ballard neighborhood. The project, dubbed ‘ZST4,’ involves a store-like delivery hub staffed by Amazon employees to fulfill online orders, with Amazon Flex drivers delivering packages within the surrounding area. The operation, designed to resemble a convenience store, will utilize a continuous flow, with drivers scanning in, retrieving packaged orders, and departing within roughly two minutes. The 24-hour, seven-day-a-week facility will stock ‘essential items and local products that are in-demand and hyper-focused on the needs of local customers.’

The hub, previously operated as an Amazon Fresh Pickup location, will be staffed by four shifts of six to eight employees, aiming to dispatch approximately 240 vehicles over a 24-hour period. This pilot aims to test the profitability of rapid delivery models, addressing challenges faced by previous initiatives like ‘Amazon Today,’ which struggled with high per-delivery costs due to small order sizes. The project’s success could set a template for regulating ‘dark stores’ in urban areas.

Whole Foods’ ‘Daily Shop’ Launches in Arlington, Testing Urban Grocery Concept

Whole Foods is experimenting with a new, smaller store format – the ‘Daily Shop’ – with its recent launch in Arlington, Virginia. This concept aims to cater to urban lifestyles and quick shopping needs, offering a streamlined selection of grab-and-go meals, snacks, and essential groceries.

The Arlington Daily Shop, located near Amazon HQ2, is roughly a quarter to half the size of a traditional Whole Foods Market, encompassing over 10,000 square feet. Despite its smaller footprint, it still provides essential offerings like produce, prepared foods, and packaged meats. Notably, it’s the first Daily Shop to incorporate Amazon pickup and returns, featuring one staffed checkout and six self-checkout stations.

Located near Amazon’s HQ2 campus and a full-sized Whole Foods location, the Daily Shop provides a comparative shopping experience. Prices are identical to the traditional store, with offerings like chicken breasts ($6.99/lb), eggs ($5.29/dozen), and pizza ($4.29/slice). While offering a robust hot food bar (pizza slices and chicken) and a coffee shop, it focuses on convenience and speed. The store also includes an area for grocery delivery orders and advertising for holiday catering.

Initial customer feedback highlights a preference for the larger Whole Foods location for its expansive hot bar and broader selection. However, the Daily Shop appeals to customers seeking a quick lunch or to-go meal. Amazon reported that 42% of shoppers at the Lenox Hill Daily Shop location were either new or re-engaged Whole Foods customers, validating the concept.

The Daily Shop serves primarily urban professionals, commuters, and nearby office workers, aligning with Whole Foods’ strategy to ‘tailor every square foot to the unique, fast-paced needs of urban lifestyles,’ according to exec Christina Minardi. The retailer is also exploring the store as a testbed for new Amazon grocery technologies, including package returns. Amazon has faced mixed results in grocery, previously experimenting with ‘Just Walk Out’ technology and exploring a ‘store within a store’ model.