Will Amazon.com expand same day delivery service to other markers beyond the program it currently has in New York City? That possibility was recently raised by an Amazon transportation manager, and would add new dynamics to the growing interest in same-day service, despite the huge logistics challenges.

Currently offered in only select areas of New York City, Amazon.com’s same-day service promises delivery by day’s end if orders are received before 11 a.m.

But Amazon’s transportation director, Mike Bhaskaran, discussed the development of the service during an interview in Seattle and claimed that the expansion may take place “very soon” and it would ideally be implemented “all over the country.”

Same day delivery is a trend that appears to be gaining some momentum (See Same Day Delivery Coming from a Store Near You?), though there are a variety of logistics and cost hurdles in the way.   

Supply Chain Digest Editor Dan Gilmore notes “The general belief is same day delivery only works in very dense metro markets, like New York City and perhaps San Francisco and a few others, and would generally based on using inventory from physical stores for fulfillment.”  

"To do so out of warehouse inventory, as I assume Amazon would need to do, would further limit the potential markets to those very near distribution center locations, and present a number of logistics and cost barriers,” he continued. “That said, there is always a market for instant gratification."

Although the initiative will likely result in increased sales for the internet retail giant, the question remains as to whether the service will be profitable or merely create more headaches than rewards.