- Amazon is spending $ 4 billion to improve its American rural distribution network
- 200 additional distribution stations will open in rural areas
- More than 13,000 zip codes will be covered by the end of 2026
Amazon has announced a plan to spend $ 4 billion by the end of 2026 to expand its distribution network in rural areas of the US.
As part of the package, the fourth most valuable company in the world will add more than 200 additional delivery stations to its network, which claims to support more than 100,000 full and part -time jobs on the road and warehouses.
Amazon Worldwide Operations SVP Udit Madan announced, “By conducting these programs and operating our own delivery network, we are capable of providing delivery seven days a week and get customers even faster packages.”
Amazon Prime Rural delivery
Multibilion-dollar investment will focus on the final-mile network of the ecommerce giant, connecting the customers’ close delivery stations.
This will include schemes such as Amazon’s own network, its delivery service partner program, Amazon Flex and Hub delivery, which enables small businesses and community members to offer their support.
“Once this expansion is completed, our network will be able to give more than one billion package each year to customers living in more than 13,000 zip codes spread up to 1,200,000 square mi,” Madan said.
With detail, Amazon hopes that delivery speed will improve in rural areas up to 50%.
In addition to clear – providing access to customers to “more than 300 million items” at an affordable price with quick distribution – Amazon also stressed that the company plays an important role in communities across America. Each new feature is expected to create an average of 170 roles.
Madan, citing research, said that Amazon’s investment in its distribution network has already led $ 500 million in economic growth in small cities and rural communities. ” Hub delivery partners are also said to be able to earn up to $ 27,000 in incremental income in a year.
According to the company’s most recent earning reports, it “distributed” its “fastest speed,” delivery “, US Prime members the same day or overnight” for more than 65% items for Prime members in 2024.
