Amazon.com said on Wednesday it would spend more than $4 billion to expand its U.S. rural delivery network by the end of 2026, doubling down on faster shipments to drive up demand from shoppers in small towns and the countryside.
The investment will grow its rural delivery network to more than 200 delivery stations and create 100,000 jobs, the company, which is among the largest private employers in the U.S, said in a statement.
Faster shipping has become a cornerstone of Amazon’s strategy, with the company pouring billions into its logistics network to stay ahead of rivals including Walmart and Target.
“Once the 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,” Amazon said.
Shares of the company, set to report quarterly earnings on Thursday after markets close, were up 3% in extended trading following strong results from Meta and Microsoft.
The move will triple the size of the rural delivery network and cut average delivery times “in half,” Amazon said.
For each new facility opened, the company estimates an average of 170 jobs will be created at the delivery stations.
Earlier this month, Bloomberg News reported that Amazon is considering a $15 billion warehouse expansion plan for about 80 new logistics facilities in U.S. cities and rural areas.
(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)
