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On Thursday, Target unveiled a new same-day ordering feature on its website. For just $9.99, customers can get items delivered to their door in a couple of hours. I gave the service a try on Thursday, and I loved it. It was fast, convenient, and affordable.
The part I'm most excited about, though, is something that isn't actually new—though I hadn't heard about it until yesterday. Target's same-day delivery option is powered by a startup called Shipt that Target acquired in 2017. And Shipt has a subscription offer that I find compelling: for $99, you can get a year of free same-day deliveries on any Target order over $35.
This is such a good deal that it ought to keep Amazon CEO Jeff Bezos up at night. Amazon Prime has been a key driver of Amazon's growth over the last decade. By making two-day deliveries free, Prime got millions of subscribers in the habit of checking Amazon first for almost anything they buy online.
But one thing that's even better than two-day deliveries is two-hour deliveries. And while Target can't match Amazon's selection, Target's same-day service offers a wide enough range of products that customers might start to check Target before Amazon for a wide range of everyday items.
Amazon has a same-day delivery service of its own, called Prime Now. But right now, Target's service appears to offer better prices, shorter delivery windows, and a more streamlined experience. It's a serious threat to Amazon's e-commerce dominance.
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