Amazon shaded Walmart's delivery announcement the next day in a snarky tweet

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Walmart launches free delivery service the next day

John Layfield, CEO of Layfield Report, former Obama economic advisor Robert Wolf, Trump 2020 Advisory Board member Marc Lotter and former investment banker Carol Roth discuss Walmart's next day delivery service and whether Amazon should be nervous.

The naval war between Amazon and Walmart is becoming more and more personal.

Jeff Bezos' e-commerce company overshadowed Walmart after the retail giant announced plans to roll out next day's delivery on Tuesday – just weeks after Amazon announced it would invest $ 800 million, to offer its prime members a free one-day shipping. Amazon did not immediately specify a schedule for the new option.

Walmart said this week it would offer consumers a next-day delivery for a "large selection of generic merchandise" valued at $ 35 or more with no membership fee. Walmart's NextDay service will be launched in Phoenix, Las Vegas and Southern California and will be expanded to 75 percent by the end of the year (including "40 of the top 50 US metropolises") of the US population.

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However, Amazon would like to remind its customers that the one-day delivery option is already available in "thousands of cities".

"Others are striving to deliver faster, and the truth is that Amazon customers in thousands of cities across 44 major metropolitan areas already have access to millions of free-of-charge items the same day," tweeted Amazon on Tuesday afternoon. "Customers are smart – they know the difference."

Bezos went on Twitter hours later to promote Amazon's $ 1.5 billion new Amazon Air Hub in Kentucky. He says he will bring customers their packages even faster.

"Three million square meters and create 2,000 jobs, and if you suspect that driving a front loader was fun, you're right! #Amazon #prime"he posted along with a video of himself at the wheel of a tractor laying the foundation stone.

Amazon has signed a 50-year lease for approximately 900 acres at Cincinnati / Northern Kentucky International Airport. There, the company will do the shipping itself to reduce costs and get the packages to customers faster.

Until Wednesday afternoon, Walmart did not respond directly to Amazon's tweet. In a press release on the imminent launch of next-day delivery, Walmart focused on the benefits to themselves and their customers.

"Our new NextDay delivery is not only good for customers, but also makes good business sense – delivering orders the next day costs us less – and nothing more, because legitimate items from a come from a single fulfillment center, that's close to the customer, meaning that the order will be shipped in a carton or as little as possible and a shorter distance will be covered by low-cost ground freight, "the company said.

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Moody's analyst Charlie O'Shea wrote in a note Tuesday that Walmart still has a "significant advantage" over Amazon in the form of 5,300 branches.

"These stores not only provide consumers with same-day availability by picking up online store orders, they also expand a world-class distribution network as they are potential shipping points," O'Shea wrote.

Brittany De Lea of ​​Fox Business contributed to this report.

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