Amazon Starts New Program to Deliver Packages to Member’s Cars

Online retail giant Amazon is rolling out a new program in 37 U.S. cities that would deliver packages to members’ parked cars.

The program is for customers who have newer compatible vehicles. Users will have to download an app from Amazon and link it to the vehicle’s so-called connected car service, like the OnStar system General Motors has. GM has said that there are at least 7 million owners of compatible GM models.

So how does it work? The Amazon customer gives Amazon an address where the car will be parked and publicly accessible, along with the make, model, color and license plate number. This helps the delivery person find the car.

Analyst Greg Melich of MoffettNathanson stated, “Amazon will keep looking for ways to reduce last mile friction and cost. I’m sure many consumers would prefer to have their car trunk opened remotely by a third party than their front door.”

The in-car delivery service is free for Prime members and will be offered in major cities like San Francisco, Seattle, Atlanta, Nashville, and Washington, D.C. as well as many others.

Atlantic Equities analyst James Cordwell also chimed in with his thoughts and said, “I think this is a good example of Amazon’s test-and-learn culture. The company tries many different things, some are successful, others less so, but all provide important insights for the company.”

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.