Amazon to Offer Prime Members New Delivery Incentives

Amazon plans to deliver packages to members of its loyalty club Prime in just one day, instead of two days, part of a spending ramp-up that might curb future profits after a blockbuster first quarter.

Shares rose as much as two percent in after-hours trading yesterday following the faster shipping announcement and the company’s first-quarter profits, which trounced estimates thanks to soaring demand for its cloud and ad services.

Amazon will reportedly spend $800 million in the second quarter on the goal.

The announcement adds pressure to rivals Walmart and others already racing to keep pace with the speed and benefits of Amazon’s Prime program.

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