The Corporate of the Year category for the Houston Innovation Awards has four finalists — each playing a role in Houston's innovation ecosystem across energy, tech, and health care innovation. Photos courtesy

What corporations are most supporting Houston's startup ecosystem? The Houston Innovation Awards sought to find that out with a new category for the 2023 event.

The Corporate of the Year category has four finalists — each playing a role in Houston's innovation ecosystem across energy, tech, and health care innovation. Learn about each of these finalists in the interviews below.

Click here to secure your tickets to the November 8 event where we announce the winner of this exciting new category.

Aramco Ventures

Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures, leads the organization locally. Photo via Aramco

Describe your company's work within the Houston innovation ecosystem.

Aramco Ventures has supported the development of Houston's innovation ecosystem as a founding member of the Ion to advance energy transition and Houston's tech economy. Jim Sledzik, managing director, Aramco Ventures North America, serves on the Ion Advisory Council. In addition we support Greentown Labs with its offices in Boston and Houston with Sledzik also named to its Advisory Board. Aramco Venture professionals are frequently tapped as speakers and participants for numerous industry speaking events and "Pitch Competitions" for start-up companies. For example, the 20th Annual Energy Tech Venture Forum held in Houston and organized by the Rice Alliance for Technology and Entrepreneurship; Climate Week NYC; and the first ever Women's Capital Summit in New York City.

Why has your company decided to support the Houston innovation ecosystem?

Houston is considered the energy capital of the world and Aramco's support and involvement will help amplify the city's reputation and presence as a global energy hub.

Describe your company's impact on the Houston innovation ecosystem.

Aramco's impact has been felt throughout the city by our involvement in major innovation events, activities, and investments.

Chevron Technology Ventures

Jim Gable, vice president of innovation at Chevron and president of Chevron Technology Ventures, leads the organization locally. Photo courtesy

Why has your company decided to support the Houston innovation ecosystem?

Investing in the communities where we operate is a core Chevron value, and Chevron is committed to building the innovation ecosystem in Houston. It’s good for our company and it’s good for the city.

The Houston region, with its deep pool of engineering and industry talent, world-class university expertise, growing startup community and vast energy infrastructure, is well-positioned to lead in the creation of lower carbon energy and improve the region’s global competitiveness. By leveraging its strengths, Houston can create its own model for how it’s going to disrupt the energy space.

Describe your company's impact on the Houston innovation ecosystem.

At Chevron Technology Ventures, we leverage our trial and deployment resources, venture investments and strategic partnerships – both internal and external – to support the technological breakthroughs that will enable the evolution to a lower-carbon energy system. CTV is an active sponsor of university programs and accelerators that build up the Houston energy ecosystem. It has led Chevron’s founding partnership with Greentown Labs Houston and was The Ion’s first tenant and program partner. CTV also backs The Cannon and Rice Alliance Clean Energy Accelerator, among others. As a partner and supporter of the innovation ecosystem, Chevron is committed to helping the ecosystem thrive.

Houston Methodist

Michelle Stansbury, vice president of innovation and IT applications at Houston Methodist, leads the company's innovation efforts. Photo courtesy of Houston Methodist

Describe your company's work within the Houston innovation ecosystem.

Our new collaborative space, the Tech Hub at Ion, is one way we are expanding our culture of innovation within Houston and its growing innovation ecosystem. Beyond showcasing ongoing technology, the Tech Hub at Ion also serves as a nucleus for community engagement and networking and hosting educational initiatives, with additional programming opportunities like reverse pitch sessions in the works.

Why has your company decided to support the Houston innovation ecosystem?

Healthcare is evolving at a rapid pace thanks to digital technology, so it’s important to search for solutions that are beyond the traditional walls of the hospital and even beyond our own industry. Serving our patients both in and outside the walls, especially in the community, has been a priority for Houston Methodist since our inception. We’ve had success in the healthcare innovation space, so we think it’s important to pay it forward and support the Houston innovation community.

Describe your company's impact on the Houston innovation ecosystem.

Our new collaborative space, the Tech Hub at Ion, is one way we are expanding our culture of innovation within Houston and its growing innovation ecosystem. Beyond showcasing ongoing technology, the Tech Hub at Ion also serves as a nucleus for community engagement and networking and hosting educational initiatives, with additional programming opportunities like reverse pitch sessions in the works. Houston Methodist’s Center for Innovation often collaborates with technology companies with solutions that provide a better patient experience and/or support clinicians and often these are technology companies early in their start-up journey. One Houston start-up Houston Methodist at the beginning of the pandemic and continues to use is MIC Sickbay, the technology that powers the virtual ICU and uses algorithms and AI to monitor patients.

Microsoft

Rob Schapiro, Energy Acceleration Program director and Houston site leader for Microsoft, leads the company's local innovation support efforts. Photo courtesy of Microsoft

Describe your company's work within the Houston innovation ecosystem.

Microsoft is committed to driving tech and innovation in the Houston community with a specific focus on underrepresented communities. Microsoft is financially supporting the ion, Greentown Labs Accel, DivInc, Tejano Tech Summit, and the Rice Alliance Clean Energy Accelerator as well as programs designed to bring the next generations of Houston founders to the forefront (G-Unity Business Lab, SuperGirls Shine Foundation, Tech Fest Live, PVAMU). Aside from the financial support, Microsoft brings a dedicated team of volunteers and mentors to each of these engagements, and they are helping shape the future of innovation in the city of Houston.

Why has your company decided to support the Houston innovation ecosystem?

We believe that it is our duty to be an active and engaged corporate partner to any and all communities in which we operate. We decided to invest in Houston because of the rich, diverse talent pool and the growing energy transition industry.

Describe your company's impact on the Houston innovation ecosystem.

  • Partnered with DivInc to create an Energy Tech Accelerator program that had its first cohort of seven companies this year.
  • Driving thought leadership and bringing attention to valuable initiatives through serving on the advisory boards of the Ion (Vice Chair position), Greentown Labs Houston, Rice Alliance Clean Energy Accelerator.
  • Supporting the next generation of innovators: 120 high school students received hands on training in innovation and prototyping as part of the G-Unity Business Lab. This program doubled in size due to its success. Microsoft sponsored prototyping and design thinking training. We also seated one of the Hustle Tank judges.
  • Graduated 14 students from the Level Up fellowship program in partnership with Prairie View A&M University and Accenture; most students received and accepted employment offers from Accenture.
  • Sponsored 20 high school girls who participated in the SuperGirls Shine Foundation's 40/40 mentorship program.
  • Ten women founders received mentoring and training as part of the DivInc Women in Tech Cohort
  • Held a four-week high school internship program for BIPOC students

This week's roundup of Houston innovators includes Howard Berman of Coya Therapeutics, Tim Latimer of Fervo Energy, and Jim Sledzik of Aramco Ventures. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from biotech to energy transition — recently making headlines in Houston innovation.

Howard Berman, co-founder and CEO of Coya Therapeutics

For Howard Berman, CEO and co-founder of Coya Therapeutics, commercializing his company is personal. Photo courtesy of Coya

Howard Berman, as co-founder and CEO, has been at the helm of Coya Therapeutics as its hit some major milestones — from raising over $20 million in venture investment to taking the company public. Coya's IPO occured in a tough market — only 12 biotech companies went public last year, Berman explains on the Houston Innovators Podcast. To Berman, that just proves how passionate the team was about getting this product to those who need it.

"It really says something for the fortitude and our team to come together to make it happen," he says on the show. "We're able to deliver and execute in a difficult market climate.

"Once you're a public company, you have different expectations," he continues. "But you also have the opportunity to go out and attract additional investors in ways you can't do as a private company." Read more.

Tim Latimer, co-founder and CEO of Fervo Energy 

Fervo Energy has raised additional funding to continue executing on its mission of more reliable geothermal energy production. Photo via LinkedIn

Fervo Energy, which has developed a process for drilling horizontal wells for commercial geothermal production as well as distributed fiber optic sensing to geothermal reservoir development, has secured the $10 million strategic investment from Devon Energy Corp.

“We are thrilled to have Devon as a partner,” says Tim Latimer, co-founder and CEO of Fervo, in a news release. “Devon is a technology leader with historic and unparalleled expertise in drilling and completing wells. We expect this partnership will help unlock further potential for geothermal as the primary 24/7 renewable energy source.” Read more.

Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures

Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures, will serve on Greentown's Industry Leadership Council. Photo via Aramco

Houston-based Aramco Americas, an arm of the Saudi Arabian energy giant, has joined climatetech incubator Greentown Labs as a top-tier partner.

In its role as a “Terawatt Partner,” Aramco Americas will gain access to activities within Greentown’s industry and entrepreneurial network. In addition, Aramco Americas will participate in Greentown’s Industry Leadership Council, an advisory group. Jim Sledzik, managing director of Aramco Ventures North America, will serve on the council. Read more.

In its role as a “Terawatt Partner,” Aramco Americas will gain access to activities within Greentown’s industry and entrepreneurial network. Photo via greentownlabs.com

Aramco joins Houston climatetech incubator with major partnership

seeing green

Houston-based Aramco Americas, an arm of the Saudi Arabian energy giant, has joined climatetech incubator Greentown Labs as a top-tier partner.

“Aramco is committed to advancing technology solutions to lower carbon emissions. This partnership with Greentown Labs will deepen our ongoing engagement with climatetech innovators and startups,” Nabeel AlAfaleg, president and CEO of Aramco Americas, says in a news release.

In its role as a “Terawatt Partner,” Aramco Americas will gain access to activities within Greentown’s industry and entrepreneurial network. In addition, Aramco Americas will participate in Greentown’s Industry Leadership Council, an advisory group. Jim Sledzik, managing director of Aramco Ventures North America, will serve on the council.

Aramco’s partnership with Greentown Labs comes on the heels of last year’s announcement of the company’s $1.5 billion fund to invest in technology that supports the ongoing energy transition. Managed by Aramco Ventures, the VC arm of Aramco, the fund focuses on carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia, and synthetic fuels.

To date, Aramco Ventures has invested in 22 startups and high-growth companies involved in the sustainability sector.

“Aramco Americas and Aramco Ventures have already exemplified what we look for in a partner: support of our entrepreneurs through investment and pilot opportunities, and engaging with our communities in Houston and Boston in the spirit of sustainability and climate action,” says Kevin Taylor, interim CEO and chief financial officer of Greentown Labs.

Greentown operates climatetech incubators in Houston and Somerville, Massachusetts.

Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures, will serve on Greentown’s Industry Leadership Council. Photo via Aramco

This week's roundup of Houston innovators includes Jim Sledzik of Saudi Aramco Energy Ventures, Arti Bhosale of Sieve Health, and Paul Cherukuri of Rice University. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from corporate venture capital to digital health — recently making headlines in Houston innovation.

Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures

Jim Sledzik joins the Houston Innovators Podcast to discuss corporate venture, Houston's role in the energy transition, and more. Photo courtesy of Aramco

When it comes to venture capital, the corporate model can be considered a little less risky, Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures, says on last week's episode of the Houston Innovators Podcast. Over the past decade, Saudi Aramco Energy Ventures has invested $320 million into 33 portfolio companies in the United States. Sledzik, who's worked in various energy services roles around the world before entering in to investment, explains that the corporate venture model is ideal for scaling big technology — and fast.

“When you’re using the venture model in a corporate setting, you have the company and the balance sheet behind you, which brings different benefits to companies you’re investing in,” he says. “These entrepreneurs who are looking to figure out how to deploy technology at scale becomes the real interesting item. All entrepreneurs want to grow — and they want to grow fast."

Scaling fast is risky, but big corporates — like Aramco — can help address the risks by providing a foothold in the market, a place to roll out the technology, and more. Click here to stream the episode and read more.

Arti Bhosale, co-founder and CEO of Sieve Health

Sieve Health is an AI cloud-based SaaS platform designed to automate and accelerate matching patients with clinical trials. Photo

Throughout her career, Arti Bhosale has seen the inefficiency and the ineffectiveness of selecting patients for clinical trials.

“Across the globe, more than 30 percent of clinical trials shut down as a result of not enrolling enough patients,” says Bhosale. “The remaining 80 percent never end up reaching their target enrollment and are shut down by the FDA.”

So, in 2020, Bhosale and her team developed Sieve Health, an AI cloud-based SaaS platform designed to automate and accelerate matching patients with clinical trials and increase access to clinical trials. Click here to read more.

Paul Cherukuri, the inaugural vice president for innovation at Rice University

Meet Paul Cherukuri — the new face of innovation at Rice University. Photo via Rice.edu

Rice University has stood up a new office of innovation — and named its new leader. Paul Cherukuri, the executive director of the Institute of Biosciences and Bioengineering, the inaugural vice president for innovation. In his role, Cherukuri will "lead Rice’s technology and commercialization infrastructure to translate breakthrough discoveries into inventions for the benefit of society," per a news release from Rice.

“I am thrilled and honored to serve in this new role at this inflection point in our university’s history,” Cherukuri says in the release. “Rice has some of the finest minds in the world and I look forward to working with President DesRoches and the leadership team he has assembled to chart a bold new path for world-changing innovation from Rice by engaging the remarkable innovation ecosystem including the Ion District, the Texas Medical Center, industry and other unique assets in Houston.” Click here to read more.

Jim Sledzik joins the Houston Innovators Podcast to discuss corporate venture, Houston's role in the energy transition, and more. Photo courtesy of Aramco

Houston corporate investor on why Houston is poised to lead the energy transition

HOUSTON INNOVATORS PODCAST EPISODE 145

When it comes to Houston's potential to lead the energy transition, Jim Sledzik, North American managing director of Saudi Aramco Energy Ventures, says it's a no-brainer.

"We understand the energy business — we understand size and scale. And the size and scale of the challenges in front of us to get to net zero is enormous,” he says on this week's episode of the Houston Innovators podcast. “The basics are here. We just need to tap into the talent and experience."

Over the past decade, Saudi Aramco Energy Ventures has invested $320 million into 33 portfolio companies in the United States. Sledzik, who's worked in various energy services roles around the world before entering in to investment, explains that the corporate venture model is ideal for scaling big technology — and fast.

“When you’re using the venture model in a corporate setting, you have the company and the balance sheet behind you, which brings different benefits to companies you’re investing in,” he says. “These entrepreneurs who are looking to figure out how to deploy technology at scale becomes the real interesting item. All entrepreneurs want to grow — and they want to grow fast."

Scaling fast is risky, but big corporates — like Aramco — can help address the risks by providing a foothold in the market, a place to roll out the technology, and more.

“With corporate venture, you can bring the assets and the application of those technologies, and you can work to scale it in a manner that’s somewhat derisked,” Sledzik says on the show. “In corporate venture capital, you have other levers in which to pull to add value to the entrepreneurs you’re investing in. The private side brings different values.”

Earlier this year, Aramco announced a partnership with the Ion, representing its dedication to the Houston innovation ecosystem. Sledzik says Aramco being named a founding partner at the Ion opens the door to more collisions with Houston entrepreneurs. Starting later this month, Sledzik and his team will host office hours every other Friday.

"Ion is the place where you can find those collisions,” he says. “You just never know when serendipity is going to be created.”

He shares more about the types of technology Aramco is looking for and his advice to energy tech entrepreneurs on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


Aramco Americas has been named a founding partner at The Ion. Courtesy of Rice University

Energy company joins Ion Houston as founding partner

new collaboration

A leading energy company has announced a new partnership with an innovation hub in the heart of Houston.

Aramco Americas, the U.S. subsidiary of Aramco, has joined as a founding partner of The Ion. Through the partnership, the two organizations will create educational programming, events, workforce development opportunities, energy transition leadership, and more. The partnership will take place over the next three years.

“The addition of Aramco as a founding partner of The Ion is another step forward in the realization of our vision of The Ion as a globally connected innovation hub that brings new possibilities to the people of Houston,” says Rice University President David Leebron in a news release. “We know the aspiring innovators and entrepreneurs of Houston will benefit from Aramco’s engagement, for which we are grateful.”

Aramco has named Jim Sledzik, managing director of Saudi Aramco Energy Ventures North America, to The Ion Leadership Advisory Roundtable to lead the partnership and help shape programming and offer insights on strategic direction. Aramco will also participate in The Ion Prototyping Lab, which opened earlier this year, and The Ion Investor Studio.

“Aramco’s commitment to innovation is reflected throughout our business operations,” says Nabeel I. AlAfaleg, president and CEO of Aramco Americas, in the release. “Partnerships like The Ion accelerate innovation, champion new ideas, and build a culture to address global energy challenges.”

Aramco joins the Ion’s other founding partners: Baker Botts, Microsoft, and Chevron Technology Ventures.

“I am excited to welcome Aramco as a Founding Partner to expand Houston’s technology and innovation ecosystem,” says Jan E. Odegard, executive director of The Ion, in the release. “Aramco’s involvement not only enables us to continue expanding our support toward inclusive and sustainable economic growth, but expand our reach globally, amplifying Houston as a high-growth technology ecosystem for energy, health, manufacturing, space, and transportation.”

The Ion is a 266,000-square-foot building developed and managed by Rice Management Company and anchors the 16-acre Innovation District in Midtown.

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Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Texas university's new flight academy opens at Houston Spaceport

cleared for takeoff

The vehicles may not have “student driver” stickers on them, but Texas Southern University has moved a dozen planes into its new training facility at the Houston Spaceport, opening the way for student flyers to use the facility.

TSU previously reached a deal with Houston Airports and the City of Houston in 2023 to house its prospective Flight Academy at Ellington Field. At the time, TSU had a small fleet of nine planes for student use, but a $5.5 million investment from the city greatly expanded the space available.

The Flight Academy includes a 20,000-square-foot hangar that serves as a TSU satellite campus. The school now has a fleet of 12 Cirrus SR20 aircraft that were acquired last year through state and alumni funding. An additional 4,500 square feet is used as classroom and office space. An 8,000-gallon fuel tank will support flight training operations.

TSU first launched its Aviation Science Management program in 1986 and added a professional pilot program in 2016. The school is now part of the United Airlines pipeline program and has also forged relationships with Delta and Southwest.

“I want to commend Texas Southern University and Houston Airports for their leadership and partnership in advancing aviation education right here in our city,” Houston City Councilwoman Dr. Carolyn Evans-Shabazz in a press release.

“It connects our students to high-paying, high-demand careers in aviation and aerospace. This is how we grow a city in the right way—by investing in workforce development, aligning education with industry and making sure our residents are prepared to lead in the industries of tomorrow. Houston is already a global leader in aerospace and projects like this strengthen that position even further, especially here at Ellington, where innovation and opportunity continue to take flight.”

The City of Houston signed an agreement to continue funding the academy for five years.

Amazon launches ultrafast, 30-minute delivery service across Houston

Amazon Now

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.”