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Amazon to spend $4B to expand Prime delivery services to rural America
Fox Businessยท 2025-06-24 19:48
Core Insights - Amazon is investing over $4 billion to expand its delivery network, aiming to triple its size by 2026, with a focus on rural America [1] - By the end of the year, millions of U.S. customers in over 4,000 smaller cities and rural communities will have access to same-day and next-day delivery [1] - In 2025, Amazon reported a more than 30% increase in same or next-day deliveries compared to the previous year [2] Delivery Network Expansion - The expansion will allow Amazon to deliver over 1 billion additional packages annually to customers in more than 13,000 ZIP codes across 1.2 million square miles [8] - Amazon's delivery network includes delivery stations near customers and partnerships with individuals and small businesses for package delivery [5] - The investment is expected to create an average of 170 jobs at the new delivery stations [5] Competitive Landscape - Both Amazon and Walmart are enhancing their shipping capabilities, including the use of drones, to compete effectively in the e-commerce space [8] - Walmart has also announced initiatives to boost its e-commerce strategy in response to competition from Amazon [11]