Amazon Now has launched in Houston. jetcityimage/Getty Images

More than 20 years after it redefined fast shipping, Amazon is preparing to raise the bar on consumer expectations again by offering to fulfill customers' most urgent product needs in Houston and other parts of the world in a half-hour or less for an extra fee.

The company, which revolutionized online shopping in 2005 with two-day deliveries for Prime members, is rapidly opening small order-processing hubs in dozens of U.S. and foreign cities to cater to shoppers who can't or don't want to wait for cough medicine to relieve flu symptoms or tomatoes for tonight's dinner salad.

The ultrafast service, called Amazon Now, first launched in India last June. Amazon says 30-minute deliveries now are also available in urban areas of the United States, Brazil, Mexico, Japan, the United Arab Emirates, the United Kingdom.

The mini-warehouses devoted to Amazon Now are about the size of a CVS drugstore. They stock about 3,500 products for expedited delivery, including beer, diapers, pet food, meat, nonprescription medications, playing cards and cellphone charging cables.

“We know that customers love speed and always have,” Beryl Tomay, Amazon’s head of transportation, told The Associated Press on Monday. “What we see customers doing, when we offer faster speeds, are they purchase more from Amazon. And Amazon becomes more top of mind for that or other types of items as well.”

In the U.S., the company first tested Amazon Now in Seattle, the home of its headquarters, and in Philadelphia. Most residents of the Dallas-Fort Worth area and Atlanta now have access as well. The service is also live in Dallas-Fort Worth, Denver, Minneapolis, Phoenix, Oklahoma City, Orlando, and dozens of other cities, Amazon said, with New York City and others expected by year-end.

The service charges for Amazon Now start at $3.99 for Prime members, who pay an annual fee of $139, and $13.99 for non-members. A $1.99 small basket fee applies to orders under $15, Amazon said.

The company's bet on a need for speed also comes as some consumers are rebelling against rushed deliveries as they weigh the potential impact on the environment and the workers tasked with preparing orders at a rapid rate.

Amazon’s approach
A relentless focus on speed helped Amazon build a logistics and e-commerce empire. After it made two days the new delivery time normal, Amazon moved into one-day and same-day deliveries for its Prime members. This spring, the company began making 90,000 products available in one hour or three hours at an extra cost.

The scaled down and sped up microhubs that are designed to handle 30-minute orders represent another step in Amazon's pursuit.

Only a handful of people prepare orders from aisles of shelves in the 5,000- to 10,000-square-foot facilities, unlike the sprawling fulfillment centers storing millions of items where Amazon employs a mix of human workers and robotics to pick and pack orders.

Amazon tailors the product inventory to each location and uses artificial intelligence and other technology to analyze what customers buy, as well as when and how often. The most popular U.S. purchases so far include soap, toothpaste, mouthwash, toilet plungers, bananas, limes and wireless earbuds, Amazon said.

The competition
Amazon’s attempt to up the instant gratification ante provides direct competition to on-demand food delivery platforms like Instacart, Uber Eats, DoorDash and Grubhub, which don't have the scale of the e-commerce titan, according to independent retail analyst Bruce Winder.

“What Amazon brings is their prowess in supply chain,” Winder said.

These smaller companies said they don't see Amazon as a threat, though, citing the hundreds of thousands of items they are able to deliver to users' doorsteps by partnering with various merchants and restaurants.

“DoorDash has a mission to empower grocers and retailers and augment their existing footprint, not to replace them,” DoorDash spokesperson Ali Musa said in an emailed statement. “We win only when they win, which is how we can offer over half a million grocery and retail items in under an hour across the country.”

Amazon also is in a race with Walmart to become the retailer that reliably gets orders to online shoppers in under an hour.

For an additional $10 on top of standard delivery charges, shoppers can place Walmart Express Delivery orders from among more than 100,000 products that are guaranteed to arrive in an hour. Many customers, however, are receiving the items under 30 minutes, Walmart CEO John Furner told analysts in February.

Domino's cautionary tale
Companies have promised deliveries in 30 minutes or less before, but the landscape also is littered with failed attempts to break the speed barrier.

The COVID-19 pandemic produced a flurry of companies that promised 10- to 15-minute grocery deliveries from microwarehouses in dense neighborhoods, according to Sucharita Kodali, an analyst at market research firm Forrester Research.

But soaring operating costs, low customer loyalty and the drying up of investor money ultimately caused most to fail before the pandemic was over, analysts said.

Domino’s in 1984 pushed a guarantee that customers would receive their pizzas for free if they weren't delivered in under a half-hour. The company amended the “30 minutes or it’s free” policy after two years, providing only a $3 discount for late deliveries.

The promotion helped Domino’s win market share, but it ended up tarnishing the company's reputation. It dropped the guarantee in December 1993 after a string of crashes and lawsuits involving drivers racing to meet the deadline.

Brad Jashinsky, a retail analyst at information technology research and consulting firm Gartner, said he thinks Amazon should take the pizza chain's experience as a cautionary tale.

“You get in trouble when you start overpromising something like that,” he said.

Amazon won't be making any time guarantees and instead plans to keep customers who chose the 30-minute delivery option updated on the progress of their orders, Tomay said.

“There's no rushing either in our building workers or the gig workers,” she said.

Taking it slow
Kodali thinks Amazon will need a lot of people placing orders around the same time from the same or adjacent apartment buildings for the 30-minute service to be cost-effective.

Consumers may appreciate rapid receipt of products like toilet paper and batteries, but retailers and logistics experts said they also see some online shoppers, especially members of Generation Z, choosing no-rush shipping for products they don't need in a hurry.

Amazon for several years has invited customers to skip one- or two-day delivery and to receive their orders on the same day in as few parcels as possible. Consolidating orders into fewer packages by electing to have them delivered at the same time cuts down on boxes, shipping envelopes and fuel use, analysts said.

“The millennials who came to age in an era that was on fast delivery came to expect it de facto, whereas ... Gen Z is more accepting of a slower speed than previous generations before them,” said Darby Meegan, a general manager at Flexport, a supply chain and logistics company that fulfills orders for thousands of online merchants.

Still, Amazon executives have cited positive early results for Amazon Now in India, where they said Prime members tripled their requests for 30-minute deliveries once they started using the service.

Amazon Now also is attracting more repeat American customers, Tomay said.

“It’s in early days and time will tell,” she said. “I think that it will be interesting to see how it evolves.”

From robotics to artificial intelligence, here's how Amazon gets its products to Houstonians in record time. Photo by Natalie Harms/InnovationMap

How Amazon's Houston fulfillment center uses AI technology and robotics to move millions of products

Prime time

Last summer, Amazon opened the doors to its North Houston distribution center — one of the company's 50 centers worldwide that uses automation and robotics to fulfill online orders.

The Pinto Business Park facility has millions of products in inventory across four floors. Products that are 25 pounds or less (nothing heavier is stocked at this location) pass through 20 miles of conveyor belts, 1,500 employees, and hundreds of robots.

The center also has daily tours open to the public. We recently visited to see for ourselves the process a product goes through at this Houston plant. From stowing to shipping, here's how packages go from your shopping cart to your front porch.

Starting with stowing 

Natalie Harms/InnovationMap

A product's first step in an Amazon facility is stowing. There's no categorization of the products — it's not like there's one floor for one type of item or anything.

"It's completely randomly stowed," says Donna Beadle, PR specialist for Amazon. "She could be stowing cat food on this floor, and so could somebody on floor two."

An Amazon employee would scan an item and stow it into an empty bin of her choosing — sort of. To prevent confusion, a light projected indicates bins that are off limits to stow the item. The light identifies bins that have similar products. Keeping similar products apart helps prevents mistakes for the employee who later pulls those items once its ordered.

The system also sees where the employee is putting each item, rather than having to scan each item and the bin as well. This is a newer feature — the facility originally opened with hand-held scanners.

"Our next generation workstation is that they don't have to hold that scanner — they have hands free," says Brenda Alford, regional communications manager at Amazon.

Robots on the move

Once the bins are fully stocked, the robot — which is the orange device on the bottom of the yellow bins — moves about the facility by scanning QR codes on the floor.

Should a product fall out, an employee wearing a special vest can enter to retrieve it. That vest will send off a signal to the robots, which will then decrease their speeds and come to a stop when the employee comes close.

"It's an extra measure of safety so that people can interact with the robots and feel safe," says Beadle.

Picking before packing

Natalie Harms/InnovationMap

Once an item is ordered, the bin with that item appears in the pick process at the center. The system tells the Amazon employee which item to grab and which bin to put it in. The bins will have products for multiple different orders — another employee later will separate it out later.

"Often we describe it as a symphony — our technology and our associates working together," Alford says, noting that sometimes the company might receive criticism about using robots over humans. "We can't do this without these humans.

Amazon employees receive their benefits from day one on the job, Beadle says, and they work four, 10-hour days a week.

"We feel like that way they have more time with their families — they get three days off versus two days off. And that gives them time to heal and rest up," she says.

Bin to bin and back again

Natalie Harms/InnovationMap

Once full, the Amazon associate will push the bin onto a series of conveyor belts. The whole facility has 20 miles of conveyor belts — much of which happens overhead.

The bins then zigzag toward the pack process, which is separated to different stations. There are single-product stations and multiple package stations. The system determines where the bin should go, and some stations pack products that are determined to need packing materials, while others do not.

Single-product packaging

Natalie Harms/InnovationMap

At the packing process, the Amazon employee is told which size box to assemble — he or she can grab a bigger box, but they can't select a smaller one. The tape dispenser doles out the correct size of tape for that box automatically.

Once packaged up, a sticker with a barcode is placed on the box. This code will later be used to print the label for shipping. At this point in the process, no personal information has been revealed to anyone. In fact, most packages leave the facility without any personal information being viewed by employees.

In an effort to reduce packing materials, some products are shipped in the container they came in. In that instance, the packer would just place the barcode sticker on the package before sending it on the conveyor belt.

"If we don't need another box for that product, we don't use one," Beadle says. "We work with companies to make that happen, so we don't have to use more boxes if we don't have to."

SLAM 


While the robotics aren't slamming labels on packages, the SLAM process (short for scan, label, apply and manifest) is the first step in the process that includes a customer's personal information. During this process, the barcode is scanned, the package is weighed, and the label is printed and affixed to the package using a puff of air.

A package might be automatically pulled from the line if something seems to be off in the package's weight.

"Say you bought toothpaste, and it says that toothpaste weighs 20 pounds, we know something's wrong," Beadle says. "Like maybe that it was a pack that didn't get separated."

If the package is kicked off, an Amazon associate, called a problem solver, will assess the situation and make it right before returning it to the conveyor belt.

Kicked into gear

Once labeled, all the packages are sent on their final conveyor belt ride. Using a scanning process, the packages are kicked by an automated foot that sends them into a line to be loaded into an Amazon truck.

If a package misses its chute the first time around, it makes the loop again. The system can tell if a package is caught in the loop for whatever reason, and a problem solver might be called to assess the situation.

Down the slide

Natalie Harms/InnovationMap

After being kicked off the belt, the package then slides down a spiral chute that, despite looking like a playground slide, is off limits to any humans wanting to keep their job.

"People ask if you can go down the slide, and we always say that on your last day of work," Beadle jokes.

On to the shipping process

Natalie Harms/InnovationMap

The packages leave the facility in Amazon trucks and head to one more pit stop before making it to the customer.

"They don't go directly to your house after this process," Beadle says. "They go to a sortation center."

This could mean a USPS or UPS stop, but it depends on where the customer lives.

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European spacecraft developer expands to Houston with U.S. business, new lab

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European aerospace manufacturer The Exploration Company has established its first U.S. entity and named Space City as its headquarters.

The company announced earlier this month that it has launched TEC Federal to support U.S. government customers and agencies, and to scale The Exploration Company's engineering operations in the country.

Mark Kirasich serves as president of TEC Federal. Kirasich most recently served as the senior director of human spaceflight at Blue Origin after a nearly 40-year career at NASA.

The Exploration Company is developing the reusable Nyx space vehicle. Nyx is designed to take off from any heavy launcher in the world. It will then dock at space stations, retrieve up to 3,000 kilograms of cargo, splash down and return the cargo to Earth. The company aims to make Nyx fully reusable for up to 10 missions, making it a more affordable and sustainable option for aerospace missions.

The Exploration Company completed a successful drop test of the spacecraft in May in the Mojave Desert. The company says Nyx is slated to perform its first flight demonstration in 2028.

In addition to launching the Houston business, The Exploration Company also opened its new Rapid Innovation Lab near Houston's NASA Johnson Space Center on Space Park Drive.

The Exploration Company opened its Rapid Innovation Lab earlier this month. Photo via LinkedIn

The Rapid Innovation Lab features a full-scale mockup of the future Nyx crew capsule as well as ongoing development and testing of the Nyx cargo capsule, according to the company.

The Exploration Company says the new lab will allow its engineers, designers, and operators to prototype and test crew interfaces. It will also support partnerships with NASA personnel and astronauts.

“Houston gives us direct access to the people and expertise that have built and operated human spaceflight systems for decades. We’re excited to invest and expand around that— engineers, operators, and astronauts working together and moving quickly towards building a crew capsule.” Hélène Huby, founder and CEO of The Exploration Company, said in a blog post.

According to The Houston Chronicle, The Exploration Company has about 30 employees in the Houston area.

The company was founded in 2021 by Huby, a French rocket scientist, and has raised more than $350 million in venture capital. It operates out of Germany, France, Luxembourg, Spain and Italy, with offices in the U.S. and the United Arab Emirates. It is also developing a reusable, high-thrust rocket engine known as Storm.

UH lands $4M NIH grant to study early signs of autoimmune disease

NIH funding

The University of Houston recently received a $4 million National Institutes of Health grant to support a 10-year longitudinal study to identify the earliest biological markers of autoimmune disease.

Led by Chandra Mohan, the Hugh Roy and Lillie Cranz Cullen Endowed Professor of Biomedical Engineering, the study aims to examine what causes Systemic Autoimmune Rheumatic Diseases (SARDs) and to identify targets for future treatments. The study will be carried out in collaboration with Dr. Karen Costenbader at Harvard Medical School, Boston.

SARDs include conditions like rheumatoid arthritis, systemic lupus erythematosus, Sjögren’s syndrome and systemic sclerosis—all are considered chronic diseases currently without a cure. Autoimmune diseases affect over 30 million people globally, according to UH.

SARDs occur when the body’s immune system attacks healthy, non-threatening tissues and organs. According to UH, in these diseases, the body often attacks nuclear antigens, creating anti-nuclear autoantibodies, which can be early detection signs for SARDs in more than 50 percent of patients, Mohan says.

Researchers will study blood samples and environmental exposure over the 10 years to better understand anti-nuclear autoantibodies.

“Collectively, these studies will help identify the genetic, environmental and cellular factors that are operative at the two steps of SARD development, namely the emergence of anti-nuclear autoantibodies and disease onset,” Mohan said in a news release. “ More importantly, these studies will highlight functional molecular pathways and mechanisms that may be operative at each step."

Mohan predicts that looking at SARDs’ shared characteristics, rather than each disease individually, could help identify more treatment methods.

“Individual SARDs have been examined in silos without an attempt to discern shared underlying features at the molecular level,” he added in the release. “Current understanding of the initial (and likely shared) origins of SARDs is only rudimentary but urgently needed to develop means for prevention and treatment.”

Earlier this year, UH also received an $11 million NIH grant to conduct a first-of-its-kind study of early language development in children ages 18 to 24 months. Read more here.