NEW YORK (TheStreet) -- Amazon (AMZN) - Get Report has been steadily growing its one-hour delivery service Prime Now, and today it has opened up shop in Austin, Texas. Amazon first started testing the expedited delivery service in Manhattan in December of 2014. As of today it is operating in all of Manhattan, as well as certain areas in Brooklyn, Baltimore, Miami, Dallas, Atlanta, and the aforementioned Austin.
The e-commerce giant plans to roll out the service to more cities throughout the year, though as of now, it is only available for members of Amazon Prime, which itself costs $99 a year.
Prime Now lets Prime members order from thousands of Amazon items in a mobile application. Shoppers can select two-hour delivery for free, or pay $7.99 for one-hour delivery. Each order has to be above $15 to qualify for delivery. The service will only deliver non-perishables (and no alcohol), and the consumer has to be home to receive the package from the courier.
Shares of Amazon were trading slightly lower late Thursday morning, down 0.26% at $380.20.
Prime Now is in direct competition with Google (GOOG) - Get ReportExpress, WunWun, and Postmates, which also offer same-day delivery in certain U.S. locations. Each service has a slightly different model, but they all offer the immediate gratification of clicking a button on a phone and having a package delivered within hours.
Amazon is likely investing more in Prime Now as a way to attract more consumers to Prime. The e-commerce giant has been steadily adding on services and benefits to Prime membership, expanding from its original core of two-day delivery. Prime members are considerably more valuable to Amazon than non-Prime members, spending an average of $1,000 more a year, according to ITG.