The simplest solution is therefore that, yes, someone 10 feet away will get it before someone 20 feet away.

The developers would have to go out of their way to add a buffer zone, e.g. find the closest person, add 1,000 feet, find everyone within that range, then select randomly. Or create a "local zone" distance range and a queue. Or other options -- once you try to figure out "what's fair" it gets really complicated.

That extra code is only going to get written if it has to.

So there's nothing ridiculous about it at all. In fact it's the simplest, most expected solution.

Now that it's news, however, Amazon might actually come up with more sophisticated requirements.