In late April, Amazon (NYSE: AMZN) offered Amazon Prime members a new service: package deliveries directly to your car within a chosen four-hour window.
The service is only available for members residing in one of thirty-seven cities who own cars that can be remotely unlocked-currently, the only models that qualify are 2015 or newer Chevrolets, Buicks, GMCs, Cadillacs or Volvos with an active OnStar account. Consumers would need to park in a publicly accessible area near a delivery location and provide the address of their parked car, as Amazon will be unable to track its exact location. Upon arrival, the delivery driver will be able to open the trunk by using the same app and place the package inside without a code or the need for consumers to unlock their entire car.
Amazonplans on expanding availability, though that will likely depend on the success of the current implementation.
The in-car deliveries are an extension of Amazon Key, which had initially been implemented to allow packages to be delivered inside of locked apartments. In order to participate, consumers needed to have an internet-connected lock as well as a security camera system in place in order to discourage theft or vandalism inside the unlocked home. The new system was meant to minimize package theft, which has become an increasing concern among consumers. One survey conducted on behalf of Xfinity home, Comcast's home security service, claimed that over 30 percent of those surveyed had experienced package theft. Amazon has also attempted to partner directly with landlords and building management operators to install Amazon lockers inside of apartment buildings, allowing items to be secured until the consumer is ready to pick them up. As of October 2017, companies such as AvalonBay Communities, Equity Residential, Greystar, and Bozzuto Group, which together manage over 600,000 apartment units, signed a deal with Amazon.
Amazon Key and car delivery are both part of a larger vision created by Amazon: by attempting to making orders as simple, affordable, and convenient as possible, consumers will have no reason to shop elsewhere. It is increasingly easy to integrate Amazon into daily life: orders can be placed and paid for with "One-click ordering"; consumers can "subscribe" to certain goods to ensure they will be delivered consistently without having to remember to do so yourself; and Amazon Echo and Alexa, the company's voice-activated cloud service, can do everything from place orders to control smart home devices.
In mid-April, Jeff Bezos announced that Amazon Prime, their membership that allows for free two-day shipping and digital streaming services, had topped over 100 million members. Shortly thereafter, Amazon announced a $20 increase for the Amazon Prime membership fee from $199 a year to $119, the first change since 2014, when the cost was raised from the original price of $79 annually to $99. The change came after Amazon had reported a strong quarter, announcing $1.6 billion in profits in just the first three months of 2018 alone.