Amazon to offer one-hour local store delivery in New York as delivery competition heats up

Amazon will begin offering one-hour delivery from local stores in New York City as competition in the delivery arena increases.

The service, offered in the city's Manhattan borough, is part of Amazon's Prime Now delivery service and will initially include grocery chains D'Agostino and Gourmet Garage and bakery Billy's Bakery, with Italian food marketplace Eataly launching shortly.

The service is only available via for members of its $99 annual loyalty program and via Amazon's Prime Now app. It's free for two-hour delivery and $7.99 for one-hour delivery.

Prime Now, which offers one-hour delivery on some of Amazon's own products, is available in Atlanta, Austin, Baltimore, Dallas, New York City and Miami.

The move comes as Uber is testing local delivery service and delivery service Postmates has begun working with restaurants like McDonald's and Starbucks.