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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Houston startup raises $6M to scale home-based healthcare platform

fresh funding

As healthcare systems race to expand care beyond hospitals and into the home, investors are placing bigger bets on the infrastructure needed to make that shift possible.

This month, Rosarium Health announced it has raised $6 million in seed funding led by Kalos Ventures, with participation from ResilienceVC, Rock Health Capital, Symphonic Capital, Black Tech Nations Ventures and others.

The investment will help the Houston-based startup continue to build its platform, which features a national network of 800-plus clinicians and 3,000-plus contractors to coordinate home accessibility upgrades and modifications for seniors and people living with disabilities.

For founder and CEO Cameron Carter, the company’s mission grew out of firsthand caregiving experiences.

“From my own personal caregiving experiences, I realized that the benefits exist on paper, but not in reality,” Carter said in a news release. “Families are being left to figure out the paperwork and installations all on their own, which shouldn’t be how this works.”

While Medicare Advantage and Medicaid plans have expanded coverage for home-based services and accessibility modifications, the logistics behind delivering those services often remain fragmented.

Rosarium’s platform coordinates the entire process, from clinical assessments and referrals to contractor management, documentation, reimbursement and installation.

“A clinician can document that a home isn’t safe and a plan can approve a benefit, but there’s no one that’s responsible for making sure the work actually gets done,” Carter says. “We built the missing piece.”

The company was founded in 2021 as Rose Health and was a 2023 participant in the Texas Medical Center’s Accelerator for HealthTech program. It has scaled quickly, building a network of more than 800 clinicians and 3,000 contractors across 34 states.

Rosarium is currently in-network for 1.2 million Medicare and Medicaid lives, with projected coverage expected to reach nearly 4 million by the end of the year, according to the release.

“We’re excited to back Cameron because he and the team at Rosarium are building the infrastructure healthcare needs right now to make the home a safe and comfortable place of care,” Kate Ballinger, investor at Kalos Ventures, added in the release.

As part of the recent investment, Ballinger will join Rosarium’s board of directors.

With eyes on the future, Rosarium plans to grow its partnerships with Medicaid and Medicare Advantage plans, including CalViva and Community Health Plan of Imperial Valley, strengthening its presence in California while expanding access to underserved communities.

Additionally, Carter predicts that home-based healthcare will be part of a broader transformation happening across the industry.

“There’s a growing recognition that health outcomes are shaped by what happens in the home,” he said in the release. “The future of healthcare isn’t just treating people after something goes wrong. It’s creating environments that help prevent those problems in the first place.”

Houston business mogul Tilman Fertitta acquires Caesars in $17.6B deal

Money Moves

Houston billionaire Tilman Fertitta may currently be serving as America’s ambassador to Italy, but his company is as busy as ever. Fresh off its move to revive the Houston Comets WNBA franchise, his company, Fertitta Entertainment, has announced a $17.6 billion deal to acquire Caesars Entertainment, Inc.

Speculation about the deal has been circulating since at least March, according to various media reports. The deal combines Fertitta’s well-known Golden Nugget casino brand with all of the properties in the Caesars’ portfolio, including Las Vegas hotels Caesars Palace, Harrah's, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo, and The Cromwell.

Overall, the combined company will include 60 domestic casino resorts and gaming facilities; online gaming including sports betting, iCasino, and Caesar’s online poker platform; retail sports betting at over 200 third-party locations through the William Hill brand; and over 550 Fertitta Entertainment outlets, including more than 450 Landry's full-service restaurants across America. The companies will combine their loyalty programs, Caesars Rewards, Golden Nugget's 24 Karat Select Club, and Landry's Select Club.

The terms will see Caesars’ shareholders receive $31 per share. Fertitta Entertainment will also acquire approximately $11.9 billion of Caesars' outstanding debt.

The transaction will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars' debt, and new committed debt financing arranged by a group consisting of 10 banks. It is subject to approval by Caesars’ shareholders and government regulators.

Fertitta Entertainment is the Houston-based company behind a diverse array of hospitality businesses, including The Golden Nugget, The Post Oak Hotel, River Oaks District, the Kemah Boardwalk, and Houston’s Downtown Aquarium.

It also operates a number of prominent restaurant brands, including Mastro's Restaurants, Del Frisco's Double Eagle Steakhouse, Morton's The Steakhouse, The Palm, McCormick & Schmick's, Landry's Seafood House, The Oceanaire Seafood Room, and Saltgrass Steak House.

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This article first appeared on CultureMap.com.

4 Houston-area institutions get $8M for cancer research facilities

fighting cancer

Cancer research capabilities in the Houston area just got an $8 million boost.

On Wednesday, May 20, the Cancer Prevention and Research Institute of Texas (CPRIT) awarded $8 million in grants to institutions in Houston and Bryan for the creation or expansion of so-called “core” cancer research facilities.

“Core facilities provide shared access to advanced technology, equipment, and scientific expertise that may not be available at every institution,” CPRIT says. “These core facilities are vital to not only cancer research but also to the study of diseases beyond cancer.”

Houston-area recipients of these $2 million grants are:

  • A facility at the University of Texas Health Science Center for preclinical support of cancer researchers in Texas to evaluate new safe, effective drugs and drug combinations.
  • The Accelerator for Cancer Therapeutics, operated by Houston’s Texas Medical Center Foundation. The accelerator helps researchers and startups move innovative cancer treatments from the lab to clinical trials.
  • Rice University’s Genetic Design & Engineering Center in Houston. The center enables researchers to collaborate on studies of custom DNA for cancer treatment.
  • A facility at the Texas A&M University System’s Health Science Center in Bryan that aims to speed up the development of cancer therapies.

In addition to those grants, the University of Texas M.D. Anderson Cancer Center, Methodist Hospital Research Institute, Baylor College of Medicine, and Rice University shared $21 million to recruit cancer researchers from other institutions.

The largest of those grants—totalling $4 million—went to M.D. Anderson for the recruitment of renowned cancer researcher Andre Nussenzweig from the National Institutes of Health. His research focuses on how DNA damage and faulty DNA repairs lead to cancer.

Here are the totals for the other CPRIT grants awarded in the Houston area:

  • $12.8 million to Houston-based Indapta Therapeutics for the development of an off-the-shelf therapy that naturally kills cancer cells, combined with an immunity-targeting agent for a type of leukemia.
  • $11.1 million to MD Anderson, including $5 million for a statewide platform to improve long-term health outcomes in adolescents and young adults who survived cancer.
  • $8.4 million to Baylor College of Medicine, including $4.8 million for two training programs for cancer researchers.
  • $6.25 million to UT Health Houston, including $4 million for a biomedical informatics and genomics training program for cancer researchers.
  • $4.4 million to the Texas A&M Health Science Center’s Houston campus, including $2.4 million for a cancer therapeutics training program.
  • $2.75 million to Rice, including $250,000 for a study of ovarian cancer.
  • $2 million to Houston-based March Biosciences for the development of a targeted therapy for treating T-cell lymphoma.
  • $1.15 million to the University of Houston, including $900,000 for a platform for detection of lung cancer.
  • $900,000 to Texas A&M in Bryan to conduct clinical drug trials in rural and underserved communities around the state.
  • $800,000 to Houston- and Israel-based Xerient Pharma for the development of an oral form of a cell-protecting drug called amifostine to protect the upper GI tract from radiation damage during pancreatic cancer treatment.
  • $659,000 to Missouri City-based OmniNano Pharmaceuticals for the development of a two-drug combination to treat the most common form of pancreatic cancer.
  • $250,000 to the University of Texas Medical Branch at Galveston for a novel therapeutic to prevent colitis-related colorectal cancer.