Amazon to spend $4 billion on small town delivery expansion

Core Points - Amazon plans to invest approximately $4 billion by the end of 2026 to expand its rural delivery network, which will include adding over 200 delivery stations, effectively tripling its current size and halving average delivery times for customers in rural areas [2][3] - The company has been enhancing its delivery speed over the past few years, transitioning from a two-day delivery standard to one-day or even same-day delivery, supported by a vast network of warehouses and in-house logistics operations [3][4] - Amazon is on track to surpass UPS and FedEx to become the largest package delivery service in the U.S. [3] - While Amazon still relies on traditional carriers like the U.S. Postal Service for some deliveries, it has significantly increased its share of deliveries through its delivery service partner program and has recently expanded a program that utilizes local mom-and-pop shops for deliveries [4] Industry Context - The logistics industry is witnessing a trend where many providers are retreating from serving rural customers due to high costs, while Amazon is actively investing to improve service in these areas [1][2] - The announcement of the expansion comes just before Amazon's first-quarter earnings report, indicating a strategic move to bolster its logistics capabilities amid scrutiny from the White House regarding pricing transparency related to tariffs [5]