Amazon To Invest $4 Bln To Expand Speed Delivery To Rural Communities Across U.S

(RTTNews) - E-commerce giant Amazon has announced its plan to invest over $4 billion to expand speed delivery service to thousands of smaller cities, towns, and rural communities across the United States.

For the first time, the company will be offering the convenience and reliability of Same-Day and Next-Day Delivery to millions of U.S. customers in more than 4,000 smaller cities, towns, and rural communities by the end of the year.

The planned over $4 billion investment is expected to triple the size of its delivery network by the end of 2026, with a focus on small towns and rural communities across the country. It will also create more jobs. The company projects an average of 170 jobs to be created in each new facility it opens, along with many more through the DSP and Amazon Flex programs.

Amazon said it is continuing to innovate to deliver even faster in 2025 after delivering to Prime members at record-breaking speeds in 2023 and 2024. In the year-to-date period, the number of items delivered the same or next day in the U.S. increased over 30% compared to the same period last year. With Prime, members have access to unlimited free Same-Day Delivery when spending over $25 at checkout.

With the expanded delivery service, customers in the rural places will get the option to shop Amazon's speed-critical everyday essentials, comprising a vast selection of affordable groceries and household goods.

The company noted that its fast delivery speeds in the first quarter helped drive everyday essentials selection to grow more than twice as fast as all other categories in the U.S.

Under the planned expansion, the company aims to transform existing rural delivery stations into hybrid hubs that serve multiple functions. Further, the firm will use advanced machine learning algorithms to predict which items will resonate with local Prime members based on their unique needs.

This includes stocking a mix of the most-popular and frequently purchased items, and products curated to fit local preferences.

Doug Herrington, CEO of Worldwide Amazon Stores, said, "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."

Amazon has more than 200 million paid Prime members around the world. In the U.S., more than 300 million items are offered with free Prime shipping.

Customers can join Prime for $14.99 per month or $139 per year, or start a free 30-day trial. Additionally, young adults can try Prime Young Adult with a six-month $0 trial, then pay a discounted rate of $7.49 per month or $69 per year for a membership.