Amazon is planning to invest over $4 billion to expand its rural delivery network across the United States by the end of 2026, the e-commerce giant announced on Wednesday.

The investment aims to enhance delivery speeds to customers in small towns and rural communities, with Amazon claiming the expansion will cut average delivery times in half for these areas.

"At a time where many logistics providers are backing away from serving rural customers because of cost to serve, we are stepping up our investment to make their lives easier and better," said Udit Madan, senior vice president of worldwide operations at Amazon.

The expansion will grow Amazon's rural delivery network to more than 200 delivery stations, creating an estimated 100,000 new jobs and driving opportunities. For each new facility opened, the company estimates an average of 170 jobs will be created at the delivery stations themselves.

According to Amazon, the completed 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 equivalent to the combined size of Alaska, California, and Texas.

The initiative represents a tripling of Amazon's rural delivery network, which began with its first rural delivery station in 2020. The company started scaling its small-town delivery network in 2023, reporting a 50 per cent improvement in delivery speeds on average.

Roslyn White, mayor of Abbeville, Louisiana, praised the impact of Amazon's presence in her community: "Amazon opening a delivery station in our town has been an incredible boon for our community. Not only has it created more than 300 jobs for our residents, it has dramatically improved delivery speeds."

The company cites research showing that its delivery network investments have already led to $500 million in economic growth in small towns and rural communities. A study by economists at Amazon and The Wharton School, University of Pennsylvania, found that when Amazon opens a facility, median household incomes in the county increase by $1,225 per year and poverty rates fall by as much as 3.3 per cent on average.

The announcement comes as Amazon is set to report its first-quarter earnings on Thursday. The e-commerce giant has been actively working to speed up deliveries in recent years, having invested significantly in building warehouses across the country and bringing more of its logistics operations in-house.

The expansion also creates opportunities for small local businesses to partner with Amazon through programmes like Hub Delivery, where businesses such as coffee shops and florists can earn additional income by delivering Amazon packages in their communities.

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