Amazon is planning a significant expansion of its same-day delivery network through an initiative codenamed Project Mercury. According to internal documents reviewed by Business Insider, the company intends to increase its Same Day Fulfillment Centers (SSDs) from approximately 85 facilities to more than 1,000 by 2031. The project aims to place inventory for roughly 90,000 popular products within a 10-mile straight-line radius of 80% of U.S. Prime subscribers.
The strategy is designed to compete with Walmart, which currently holds a physical proximity advantage with thousands of stores located near the majority of U.S. consumers. Internal documents indicate that Amazon aims to improve its delivery speeds for everyday items like fresh food and household essentials. An Amazon spokesperson described the internal projections as "preliminary" and "subject to significant revision," but confirmed the company is focused on expanding its same-day delivery capabilities.
To support this expansion, Amazon plans to utilize a warehouse system called Orbital, which consists of approximately 100,000-square-foot facilities capable of processing 75,000 units daily. Documents show the company's three-year operating plan budgets $6.8 billion for U.S. SSD capacity across 2026 and 2027. Finance reviews estimated the project could generate $7.1 billion in economic value over a decade and achieve positive cash flow by 2030.
The scale of the investment involves billions of dollars in capital spending, including an estimated $48.4 million for each new Orbital facility. If the projections hold, these same-day centers are expected to handle 28% of Amazon-fulfilled volume by 2029 and 50% by 2035. This represents a shift in logistics that could reduce the need for conventional delivery facilities. The company believes that increasing delivery speed will lead to higher purchase frequency and customer retention.
The initiative also sets a precedent for how e-commerce companies utilize dense urban and suburban warehouse networks to mirror the proximity of physical retail. Beyond standard delivery, these SSDs are planned to serve as launch points for Prime Air drone deliveries and support expanded services like Amazon Now. While the internal documents outline an aggressive timeline through 2031, the company maintains that these plans are not yet finalized and could be revised as the roll-out progresses.