Amazon announced last Wednesday, April 30, that it will invest more than $4 billion to expand its rural delivery network and provide fast delivery to millions of customers in less densely populated areas.
The financial injections announced this week will allow the mentioned e-commerce giant to expand its rural delivery network to more than 200 delivery stations and create over 100,000 new jobs. The investment will also enable the retailer’s network to deliver over a billion packages each year to customers in more than 13,000 ZIP codes. This was announced by Udit Madan, senior vice president, Amazon Worldwide Operations, in a blog post.
The specified post also highlighted that while many logistics providers are abandoning rural customer service because of cost, Amazon is increasing its investments in the relevant sector to make the lives of the mentioned clients easier and better.
The e-commerce giant opened its first rural delivery station in 2020. Three years later, the company began efforts to expand its small-town delivery network and increased the average delivery speed by 50%.
Udit Madan stated that Amazon intends to triple the size of its rural delivery network by the end of 2026. In this case, the company plans to provide Prime members from Milton, Florida, to North Pole, Alaska, the ability to shop from over 300 million items from the convenience of their homes and receive their packages even faster.
The media has already reported that the e-commerce giant is stepping up its efforts to expand logistics. These efforts are being implemented through acquiring industrial property and restructuring the distribution network.
As we have reported earlier, Amazon Denies Tariff Label Plans.
