In This Article:
American e-commerce giant Amazon is to invest more than $4bn in expanding its rural delivery network, focusing on small towns across the US.
This move is set to accelerate delivery times for customers in less densely populated areas.
The expansion will increase the company's delivery stations to more than 200 and is expected to generate more than 100,000 new jobs and driving opportunities.
Amazon's network will be capable of delivering more than 1 billion additional packages annually to customers across an area spanning 1,200,000 square miles.
Since opening its first rural delivery station in 2020, Amazon has been scaling up its network in small towns.
The improvements have already halved delivery times on average.
By the end of 2026, the network is projected to triple in size, offering Prime members from Milton, Florida to North Pole, Alaska access to more than 300 million items with reduced delivery times.
The expansion is expected to benefit Prime customers with faster deliveries and also to maintain the same low costs.
An average of 170 jobs will be created at the delivery stations for each new facility opened, with additional driving opportunities through the Delivery Service Partner (DSP) and Amazon Flex programmes.
The DSP programme supports small business entrepreneurs in establishing successful delivery companies, while Amazon Flex allows individuals to earn extra income by delivering Amazon packages using their own vehicles.
Amazon said in a statement: “One of the Prime benefits that members love most is unlimited fast, free delivery. Over the past couple of years, we’ve innovated to deliver record-breaking delivery speeds to Prime members across a wide selection of products, and we now offer more than 300 million items with free Prime shipping (up from one million when the programme launched in 2005).
“Our logistics network is at the centre of making this incredible convenience available to customers. One area where we’ve continued to innovate to provide the best customer experience possible is in our “last mile” network, which coordinates final deliveries to customers. This network is made up of delivery stations located close to customers, where packages are prepared for delivery, and programmes that partner with individuals and small businesses who deliver packages on behalf of Amazon.”
In April 2024, the US National Labor Relations Board (NLRB) Region 20 filed a complaint against Amazon for allegedly refusing to negotiate with DCK6 warehouse workers in San Francisco, represented by the Teamsters union, who sought recognition in October 2024.