NEW YORK, March 17 (Reuters) - Amazon ( AMZN ) is

ramping up its speedy delivery service by offering 1-hour and

3-hour shipping in markets across the U.S., including Los

Angeles and Chicago, in its latest efforts to stave off

e-commerce competition from its biggest rival Walmart ( WMT ).

Fast delivery has been a significant part of Amazon's ( AMZN ) push to

increase basket sizes and shopping frequency. The company in

December announced a separate service called "Amazon Now" to

deliver grocery items and everyday essentials in 30 minutes or

less in select locations including Seattle and Philadelphia.

"We saw an opportunity to use our unique operational

expertise and delivery network to help make customers' lives a

little easier while unlocking even more value for Prime

members," Amazon ( AMZN ) Senior Vice President of Worldwide

Operations Udit Madan said in a press release.

The Seattle-based e-commerce giant said on Tuesday that its

1-hour delivery option is available on more than 90,000

products, including everyday essentials, toys and toilet paper,

and will rely on its existing same-day delivery network. The

60-minute option has launched in major U.S. metropolitan areas

and smaller cities like Boise, Idaho. The 3-hour option has

launched in more than 2,000 cities and towns. Perishable

groceries are available in select areas, Amazon ( AMZN ) said.

To ensure the 1-hour and 3-hour orders are fulfilled in a

shorter amount of time, Amazon ( AMZN ) introduced designated work

stations for these orders within existing same-day delivery

centers, new yellow labels that are placed on the packages for

easy identification and updated signage throughout the site to

easily direct delivery partners, the company said.

Using the high-speed delivery comes at an extra fee. Prime

members pay an extra $9.99 for 1-hour delivery and $4.99 for

3-hour delivery. Shoppers without Prime memberships pay $19.99

for 1-hour orders and $14.99 for 3-hour deliveries.