The, Inc. logo is seen on the side of a delivery truck in Brooklyn
The, Inc. logo is seen on the side of a delivery truck in Brooklyn, New York October 23, 2014. Inc is expected to report a third-quarter loss of 74 cents per share and provide an outlook for the upcoming holiday shopping quarter. Reuters/Brendan McDermid

The new service offered is called Prime Now, which is only open to those who subscribe to Prime, which costs US$99 a year. At present, it is only available in Manhattan, New York, although Amazon has announced that it will be offering the service to more cities in 2015.

Amazon is faced with a highly stiff competition in delivering goods to consumers' doorsteps. Apparently, Google has been doing some experiments with its own delivery service. Last October, it has expanded beyond its reach. Aside from its early outposts in New York and California, Google is now servicing Boston, Chicago and Washington, D.C. For same-day service, users of Google Express must pay US$95 per year, or US$10 per month, CNET reports.

Prime Now is powered by Amazon's "growing network of fulfillment centers". According to BGR, it is beneficial to note that the service does not offer all of the items for sale on the website. Instead, Amazon Prime subscribers can download Prime Now Android app from the Amazon Appstore and order any of the products available within the app.

The e-commerce giant is working on making consumers more familiar with its same-day delivery service on so-called "essentials" to more and more cities. And by daily essentials, Amazon basically refers to smaller items like batteries, cereals, soap, paper towels, books and even toys. With the one-hour delivery slots, Amazon is definitely ramping things up a few notches.

According to Dave Clark, Amazon's senior vice president of worldwide operations, the service answers the needs of consumers especially when they do not want to go out to stores to make purchases. He also believes that Amazon Prime is the best deal in the history of shopping, and now it got even better.

Finally, Prime members can order goods from six in the morning to midnight, seven days a week. The service also offers a free two-hour delivery. But if consumers want to get an order in one hour or less, they need to spend US$7.99.