Amazon to invest $4 billion in small town delivery expansion
Amazon announced plans to invest approximately $4 billion by the end of 2026 to significantly expand its delivery infrastructure in rural areas across the United States. The initiative aims to triple the size of the company’s rural delivery network and dramatically reduce shipping times for customers in less densely populated regions.
As part of the expansion, Amazon will add over 200 new delivery stations, cutting average delivery times in half for rural customers. Each new facility is expected to create around 170 jobs, potentially generating tens of thousands of new employment opportunities in small towns nationwide.
“At a time where many logistics providers are backing away from serving rural customers because of cost to serve, we are stepping up our investment to make their lives easier and better,” said Udit Madan, Amazon’s Senior Vice President of Worldwide Operations.
The investment reflects Amazon’s broader push to maintain its edge in logistics by bringing products closer to customers. It builds on years of effort to shift from standard two-day delivery to same-day or even same-hour fulfillment in certain markets. Key to this strategy has been Amazon’s growing in-house logistics network, which has enabled it to rival traditional carriers like UPS and FedEx. By 2022, Amazon had already become the largest U.S. package delivery company by volume.
This move comes as other delivery providers, including UPS, scale back operations in rural areas. UPS recently announced it would slash 20,000 jobs, in part due to cutting Amazon-related deliveries by over half. Meanwhile, Amazon continues to grow its own delivery service partner program and Flex gig network, and has also expanded its 2023 initiative that empowers local mom-and-pop shops to deliver packages in rural towns.
The rural expansion announcement also coincides with Amazon’s upcoming Q1 earnings report and follows recent scrutiny from the White House over proposed tariff-related price disclosures—plans Amazon says it is no longer pursuing.
With this aggressive investment, Amazon is doubling down on rural America, turning logistical complexity into strategic advantage as it brings faster shipping to all corners of the country.
