Amazon Prime Now is using ComfortDelGro taxis to make deliveries in Singapore, according to Today on Aug. 1, 2017.

ComfortDelGro confirmed the trips are happening and said deliveries operate like any normal taxi booking with at least one passenger on board each taxi.

ComfortDelGro is the largest fleet taxi operator with almost 16,000 taxis.

Some freelance drivers with ride-hailing firms Grab and Uber have also started doing deliveries for Amazon's ultra-fast service to earn extra side income.

It was reported that delivery personnel can make about S$25 per hour.

Amazon’s warehouse at Toh Guan Road East is in the western part of Singapore.

Overwhelming customer response has resulted in Amazon Prime Now's delivery to be unavailable for extended periods since mere hours into the app's launch in Singapore on Thursday, July 27.

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Teething problems likely not major

Amazon Prime Now's teething problems in Singapore is unlikely to last though.

Outsourcing delivery to this extent is a short-term, cost-incurring measure.

Once the logistics company expands, stabilises and builds its capabilities to replicate its frictionless consumer experience in the United States, it will change retail patterns, consumption habits and cause downward pressures on prices of everyday items here.

As a tech company, first and foremost, Amazon's massive database and price comparison mechanisms will offer consumers more variety and costs savings.

Its mere entry into the Singapore market is a clear sign that a shake-up of the retail industry has already begun.

Related article:

Amazon Prime Now hiring delivery drivers in S’pore at S$25 per hour