Investing.com -- Amazon (NASDAQ: AMZN ) announced Thursday it is planning to invest $4 billion in rural America to expand its delivery network and create more than 100,000 new jobs. The investment aims to offer faster delivery and a wider selection of products to customers in small towns across the U.S.
The company’s Prime members appreciate the unlimited fast, free delivery service which has grown exponentially over the years. From offering one million items with free Prime shipping in 2005, Amazon now offers more than 300 million items under the same program. The logistics network of Amazon plays a crucial role in providing this convenience to its customers.
Amazon’s "last mile" network, which coordinates final deliveries to customers, includes delivery stations located close to customers, and programs that partner with individuals and small businesses for package delivery. Programs such as the Delivery Service Partner (DSP) program, Amazon Flex (NASDAQ: FLEX ), and Hub Delivery have created hundreds of thousands of jobs and driving opportunities. The DSP program has empowered 2,600 U.S. business owners, creating 210,000 U.S. driving jobs, and generating nearly $50 billion in revenue for their companies.
With the new investment of over $4 billion, Amazon aims to expand its rural delivery network in small towns across the United States. This investment is expected to increase the rural delivery network’s footprint to over 200 delivery stations, and create over 100,000 new jobs and driving opportunities. Once the expansion is complete, Amazon’s 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.
The expansion will also improve the delivery speeds in rural areas by 50% on average. By the end of 2026, Amazon plans to triple the size of its rural delivery network. An independent study from research firm Profitero in 2024 found prices in Amazon’s store to be the lowest prices across all product categories—with prices that are 14% lower than all major U.S. retailers, on average.
The investment will also create job opportunities and economic growth in the rural communities. For each new facility, an average of 170 jobs will be created at the delivery stations, plus many more through driving opportunities through the DSP and Amazon Flex programs. Amazon has added more than 500,000 jobs across the country in the last five years, including in small-town communities.
The expansion will also support local businesses. For example, local businesses like coffee shops and florists can deliver Amazon packages through the Hub Delivery program. Partners can make up to $27,000 in incremental income a year, and help deliver to Amazon customers in smaller towns.
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