Amazon Plans to Invest $4 Billion by 2026 to Speed Up Deliveries in Rural America

Dow Jones
05-01

Amazon said it plans to invest $4 billion to expand its delivery network in small towns across the U.S.

Amazon shares jumped 3.7% in premarket.

The investment will grow its rural network footprint to over 200 delivery stations, Amazon said on Wednesday. By 2026, the company plans to have tripled the size of that network, and says it will cut delivery times for rural customers in half.

"While many logistics providers have backed away from investing in rural customers and communities, we're doing the opposite," said Udit Madan, Amazon's senior vice president of worldwide operations, in a press release.

The Seattle-based retail giant said the investment and expansion would create over 100,000 new jobs. Each new facility it opens will create 170 jobs at the location itself, plus additional ones through partnership delivery programs.

The Wall Street Journal reported last summer that Amazon was making a push for faster delivery of packages to rural areas. The strategy included more contracted drivers and mom-and-pop shops, and fewer deliveries handled by the U.S. Postal Service.

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