Amazon's New Move To 'Up The Ante' Threatens Big Box Retailers, Wedbush Says

In a report published Thursday, Wedbush analyst Michael Pachter maintained his Neutral rating and price target of $435 on

. The company ahs announced that it will provide free same day delivery for its prime members. Amazon announced that the free same say delivery service would be available across 14 major metropolitan areas, excluding Chicago, on orders above $35. Prime members can get same day delivery for orders below $35 for a $5.99 charge, which is lower than the usual rate. "According to the website, orders placed before noon are guaranteed for delivery by 9 p.m., seven days a week. Orders after noon are guaranteed by the next day," the Wedbush report stated. In addition, the company also launched an additional feature, called Prime Now. This is a one-to-two hour delivery service, in which two-hour delivery services are free and one-hour delivers will cost $7.99 in select cities. This service was originally launched in Manhattan in December 2014, but has rapidly grown to include several more cities. "We expect Amazon to continue its expansion to several more U.S. cities in the near-term with both its same day and Prime Now delivery options, increasing its market share in each region. We think that by offering free service to its Prime members, Amazon is closing the gap between low price and convenience, and offering both," analyst Michael Pachter said. The analyst believes that getting closer to the "immediate" delivery option will help Amazon capture greater market share, spelling trouble for its competitors, including physical stores, which cannot match the company's logistic abilities.