Amazon announces plans to triple delivery network, targeting rural U.S. with $4B push for same- and next-day deliveries

Seattle-based global e-commerce bellwether Amazon recently announced it has it will be expanding its Same-Day and Next-Day Delivery services, with a rural focus, for tens of millions of United States-based customers located in more than 4,000 smaller cities, towns, and rural communities by the end of 2025.

Company officials explained that this initiative is focused on “transforming daily life for rural customers who typically farther from brick-and-mortar retailers, have fewer product and brand choices, and face limited delivery options when shopping online,” adding that “by investing in rural communities, Amazon’s speedy delivery will save customers time and money regardless of where they live,” adding that customers in these areas typically have fewer retail options and longer delivery wait times.

This is part of the company’s $4 billion investment towards tripling its delivery network by the end of 2026, with a focus on small towns and rural areas. What’s more, Amazon observed that fast delivery is driving significant growth in its everyday essentials category, which is comprised of groceries and household goods, with that segment’s growth rate more than doubling its other U.S. product categories—with more than $100 billion in gross sales. And it added that Same-Day and Next-Day Delivery Services are being offered already in more than 1,000 locales, with 90% of the top 50 repurchased items being for everyday essentials, said Amazon.

“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,” said Doug Herrington, CEO of Worldwide Amazon Stores.

Through this more than $4 billion investment, Amazon noted that for each new delivery station facility it opens, there is an average of 170 jobs that will be created at each location, in addition to driving jobs through the company’s DSP and Amazon Flex programs. Another key element of this initiative, according to Amazon, is how the company is transforming existing rural delivery stations into hybrid hubs serving multiple locations, including storing inventory on site to enable delivery within hours and preparing packages for final delivery to customers, as well as maximizing Amazon’s existing rural infrastructure in order to position products closer to customers and also cut down on length of haul.

Udit Madan, Senior Vice President, Amazon Worldwide Operations, wrote in a blog post that at a time where many logistics providers are backing away from serving rural customers because of cost to serve, Amazon is stepping up its investment to make their lives easier and better.

“This investment will also grow our rural delivery network’s footprint to over 200 delivery stations, and we estimate it will create over 100,000 new jobs and driving opportunities through a wide range of full-time, part-time and flexible positions in our buildings and on the roads,” wrote Madan. “Once this expansion is complete, our network will be able to deliver over a billion more packages each year to customers living in over 13,000 zip codes spanning 1,200,000 square miles—an area the size of Alaska, California, and Texas combined.”

Adi Karamcheti, Consultant, Professional Services at San Diego-based Shipware, called this a very significant development for Amazon, noting that Same-Day and Next-Day Delivery to rural areas is something he would have expected to have taken it longer to do.

“The bullet point that stood out most to me was: Amazon is investing over $4 billion to triple its delivery network by the end of 2026, focusing on small towns and rural areas,” he said. “At a time when FedEx and UPS are reducing capacity, Amazon is expanding. And for them to provide this level of service where FedEx and UPS often take several days to deliver, it really ups the ante. I'm assuming part of Amazon's motivation is to compete with Walmart on the same- and next-day delivery side.”

And Karamcheti’s colleague, Shipware founder Rob Martinez said that for years, FedEx and UPS have dominated rural delivery, largely because no one else could afford the density and reach required to make it profitable, stating that Amazon’s $4 billion investment to triple its delivery network focused specifically on rural markets represents a direct threat to that dominance.    

“By contrast to ever-expanding Amazon, other carriers have been scaling back operations to control costs,” said Martinez. “FedEx recently announced plans to shutter, merge or repurpose thousands of remaining Express and Ground facilities as FedEx pursues greater density and efficiency. Likewise, the USPS has been scaling back service centers and operations in rural America as part of its broader ‘Delivering for America’ cost‑cutting and network rationalization strategy. It’s a big win not only for Amazon, but also smaller towns and rural communities have long depended on FedEx, UPS and the U.S. Postal Service. Amazon not only locks in demand, but does so without paying FedEx or UPS a dime for last-mile delivery. Once fully developed over the next pair of years, Amazon’s move into rural America is one the final building blocks of a nationwide, next day alternative to the traditional carriers.”