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Amazon is spending $4 billion to improve its US rural delivery network 200 additional delivery stations will open up in rural areas Over 13,000 zip codes will be covered by the end of 2026 Amazon has announced plans to spend $4 billion by the end of 2026 to expand its delivery network across rural areas of the US. As part of the package, the world's fourth-most valuable company will add over 200 additional delivery stations to its network, claiming to support more than 100,000 full- and part-time jobs both on the road and in warehouses. "By having these programs and operating our own delivery network, we’ve been able to provide deliveries seven days a week and get packages to customers even faster," Amazon Worldwide Operations SVP Udit Madan proclaimed.
Amazon may be about to spend $15 billion on new US warehouses Amazon CEO says it has to operate like the “world's largest startup”, urges AI investment Amazon wants to spend $100 billion this year for ‘once in a lifetime' AI opportunity Amazon Prime rural deliveries The multibillion-dollar investment will focus on the ecommerce giant's last-mile network, adding further delivery stations closer to customers. This will include Amazon's own network as well as schemes like its Delivery Service Partner program, Amazon Flex, and Hub Delivery, which enables small businesses and members of the community to offer their support. "Once this expansion is complete, our network will be able to deliver over a billion more packages each year to customers living in over 13,000 zip codes spanning 1,200,000 square miles," Madan added.
With the expansion, Amazon hopes to improve delivery speeds by up to 50% in rural areas. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Apart from the obvious – giving customers access to "over 300 million items" at an affordable price with quick delivery – Amazon also stressed that the company plays an important role in communities across the US. Each new facility is expected to create an average of 170 roles.
Madan cited research showing that Amazon's investments in its delivery network have "already led to $500 million in economic growth in small towns and rural communities." Hub Delivery partners are also said to be able to earn up to $27,000 in incremental income a year. According to the company's most recent earnings report, it delivered its "fastest speeds ever for Prime members in 2024," delivering "over 65% more items to US Prime members the same day or overnight" compared with the year before.
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