Amazon will invest over $4 billion to triple its delivery network by 2026, focusing on bringing same-day and next-day Prime delivery to over 4,000 small cities, towns, and rural communities across the U.S.
The expansion will cover more than 13,000 ZIP codes, spanning approximately 1.2 million square miles, and enable over 1 billion additional annual deliveries.
“Everybody loves fast delivery. So, whether you live in Monmouth, Iowa, or in downtown Los Angeles, now you’re going to have the same fantastic Amazon customer experience: the ability to get the wide variety of items you need to keep your household running every day, delivered the same or next day,” said Doug Herrington, CEO of Worldwide Amazon Stores, per Fox 4 KDFW.
Amazon’s delivery network includes stations near customers for package preparation and partnerships with individuals and small businesses for deliveries.
The expansion, already offering free same-day and next-day delivery in over 1,000 smaller communities like Lewes, Delaware, Asbury, Iowa, and North Padre Island, Texas, will create an average of 170 jobs per new delivery station and over 100,000 total jobs, including full-time, part-time, and driving roles, according to Udit Madan, senior vice president of worldwide operations.
“This investment will also grow our rural delivery network’s footprint to over 200 delivery stations,” Madan said, CNET reported.
The move aims to compete with rivals such as Walmart, which has recently expanded its drone delivery service. Amazon’s same-day and next-day deliveries in the U.S. have surged by 30% this year compared to last year. The expansion supports small businesses through the Amazon Hub Delivery program, allowing local owners to deliver products directly to customers.
James Bricknell, e-commerce expert at CNET, called the strategy savvy.
“If they can cut out the other carriers, they can control the prices businesses pay to them, making it cheaper for Amazon in the long run,” he said. However, he noted potential resistance, adding, “Small towns don’t often like large warehouses blotting the landscape, so Amazon might have a fight there.”
The announcement precedes Amazon’s Prime Day, set for July 8-11, marking the first time the event will span four days.