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Amazon's Project Mercury would put a same-day warehouse within 10 miles of 80% of Prime members

Internal documents reviewed by Business Insider describe growing Amazon's same-day network from about 85 facilities to more than 1,000 by 2031, a five-year build that Amazon says is preliminary and not finalized.

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Photograph accompanying Amazon's Project Mercury would put a same-day warehouse within 10 miles of 80% of Prime members
Photo: businessinsider.com

What happened

  • Internal planning documents reviewed by Business Insider describe Project Mercury, a plan to grow Amazon's same-day fulfillment network to more than 1,000 locations by 2031 from roughly 85 today.
  • The documents set a goal of placing same-day facilities within a 10-mile straight-line radius of 80% of US Prime subscribers, against the roughly 90-minute drive typical of those facilities now.
  • The facilities at the center of the plan, called Same Day Fulfillment Centers, carry Amazon's 90,000 most popular products rather than its full catalogue.
  • Amazon expects each roughly 100,000-square-foot Orbital warehouse to process about 75,000 same-day and perishable units a day, at an estimated $48.4 million in capital spending per site.

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Why it matters

  • contradiction One document calls Mercury a transformational redesign of the same-day network while Amazon's spokesperson calls the projections preliminary and subject to significant revision. A competitor sizing its response has to carry both readings at once.
  • decision Retailers budgeting 2027 delivery capacity have to choose their planning base: the 2031 density target, or the site openings they can count over the next four quarters.
  • exposure Walmart's store proximity is the asset Mercury is aimed at, and groceries and everyday essentials are where that proximity pays. Amazon's grocery gross sales are already large, and Walmart's are larger.

The distance between roughly 85 same-day facilities and the 1,000 in the plan is about 915 buildings [19]. Amazon's own capital estimate for an Orbital site, the smaller format it hopes will speed the expansion, is about $48.4 million [18][23]. Multiply that by 915 and the number lands near $44 billion, before inventory and labour [20]. Not every new site would be an Orbital, and Business Insider puts the cost at billions of dollars without a total [2].

Then there is the schedule. Business Insider published the documents in September 2026, which leaves about five years to the 2031 date [22]. Averaged across that window, openings would run near 183 a year, and each one needs a site, a permit and a workforce [21].

The coverage numbers do not sit on the same base. Amazon's target counts 80% of US Prime subscribers inside a 10-mile straight-line radius [6]. Walmart's figure counts about 90% of the US population within 10 miles of a Walmart or Sam's Club, and Walmart says 95% of US households can already receive delivery in under three hours [11][12]. One denominator is a subscriber list, the other is the country. Read on Amazon's own document, the 2031 finish line sits behind where Walmart says it stands now.

A skeptic would say internal planning documents are not commitments, and Amazon's spokesperson said close to that. The projections are "preliminary, subject to significant revision, and shouldn't be treated as finalized plans," the spokesperson told Business Insider [7]. The spokesperson also said: "That said, it's no secret that we're focused on delivering faster for customers and the expansion of our same-day delivery network is playing a big role in that" [9]. Amazon adds that its same-day network already serves more than 10,000 cities and towns, and that same-day orders are not filled only through SSD facilities [8].

Proximity matters most in the category Amazon is chasing. Amazon says its grocery business generates more than $150 billion in annual gross sales, a figure that includes nonperishable products, and Business Insider reports Walmart's grocery business is much bigger [16]. In Canada, an internal planning document said major retailers were "outpacing our delivery capabilities," citing investments by Walmart and Best Buy [15].

Density is one route among several Amazon is running at once. Business Insider has previously reported Project Kobe, a plan for Walmart-sized stores with large automated backrooms that would fulfil online orders and work as local delivery hubs [13]. Amazon is also testing an all-day model with 10 overlapping delivery windows, expanding its Amazon Now ultrafast service, and using SSDs as launch points for Prime Air drones [14].

What to watch

  • Lease signings and permit filings for 100,000-square-foot sites: the opening rate over the next four quarters tests the 2031 schedule.
  • Whether Amazon restates, defers or drops the 10-mile coverage target after calling the projections preliminary.
  • Whether Walmart moves its under-three-hours coverage above 95%, or Amazon publishes a population-based coverage figure that can be compared with it.
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