Amazon just cracked the last mile: what it means for global retail

Amazon did something big and hardly said anything.

Coming just days after a high-profile AWS outage that disrupted services globally, the launch of Amazon Now in the United Arab Emirates couldn’t be better timed.

The retail giant announced its fastest delivery service ever, which can deliver groceries, chargers, and other essentials to consumers in as little as six minutes, helping recover some much-needed prestige after the outage left both consumers and Amazon's investor base scratching their heads.

The move is a smart one.

Ronaldo Mouchawar, Amazon’s vice president for the Middle East, Africa, and Turkey, said it best:

Every innovation at Amazon starts with our customers, and Amazon Now is designed for their pace of life here.

However, there is something more strategic behind the speed and ease — a logistical experiment that could transform the way Amazon conducts business worldwide.

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The idea is simple: eliminate the distance between your front door and the product you want.

Amazon may avoid large delivery delays by using tiny, carefully situated fulfillment hubs. This could also help it avoid the infrastructural problems that many overseas markets face. Some customers are now getting their orders in as little as six minutes, according to executives.

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It is also a competitive blow.

Amazon's move indicates that it's prepared to invest money and intensify its logistics efforts to succeed in the Gulf, where supermarket battles are intensifying and local e-commerce competitors are gaining ground.

Why Amazon chose to expand UAE logistics

It's not simply about the speed of the launch. Timing is everything.

The UAE's e-commerce sector is valued around $11.05 billion right now, and by 2030, it is expected to be worth $20.5 billion, with a strong 12.4% CAGR. Smartphone use is quite high in the area, and mobile devices make up 72% of online transactions.

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Amazon isn't starting from scratch. Amazon.ae, its local UAE business, made over $770 million in first-party net sales in 2024. That amount doesn't include the volume of the marketplace, so the real number is probably considerably larger.

Some predictions say that by the end of 2025, Amazon might have 30% or more of the Middle East's e-commerce industry.

The infrastructure in the area backs the bet. In 2024, the UAE's non-oil commerce grew by 14.6%, reaching $817 billion. That rise shows why Amazon chose to expand its logistics network; it wants a piece of the pie.

Amazon Prime gets a delivery upgrade

In the UAE, Prime members may now enjoy free Amazon Now delivery on purchases over $6.80. They can also choose a new 2-hour delivery option for thousands of other goods in more than 30 categories. For orders below that amount, there is a $1.60 charge.

The two-hour service is also free for purchases above $27. If your order is less than that, you have to pay $0.80.

It's a smart strategy to make Prime even more appealing in a market where rivals are struggling to keep up with both speed and variety.

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