Amazon to spend $4B to expand Prime delivery services to rural America
UPS to cut 20,000 jobs amid reduced Amazon deliveries
UPS plans to slash 20,000 jobs and close over 70 facilities as part of a plan to lower the amount of Amazon shipments it manages.
E-commerce giant Amazon is investing more than $4 billion to triple the size of its delivery network by 2026 with a focus on expanding delivery services across rural America.
Tens of millions of U.S. customers in more than 4,000 smaller cities, towns and rural communities will get access to same-day and next-day delivery by the end of the year, the company announced on Tuesday. It's the latest development in its effort to ramp up shipping speeds and jockey for dominance against competitors like Walmart.
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So far in 2025, Amazon said that the number of items the company delivered the same or next day in the U.S. increased by more than 30% compared with the same period last year. Now, it's trying to ensure it's appealing to rural consumers.
The logo of US online retail giant Amazon is seen on the facade of a redistribution center. (Credit: INA FASSBENDER/AFP via Getty Images)
"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," Worldwide Amazon Stores CEO Doug Herrington said in a statement.
Amazon's delivery network consists of delivery stations located close to customers, where packages are prepared for delivery, and programs that partner with individuals and small businesses who deliver packages on behalf of Amazon. With the added investment. Amazon touted it will also create an average of 170 jobs at the delivery stations in addition to driving opportunities.
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Amazon has already begun offering free same-day and next-day delivery to customers in the more than 1,000 smaller cities, towns and rural communities.
Once the company's expansion is complete, it will be able to deliver over 1 billion more packages each year to customers living in more than 13,000 ZIP codes spanning 1.2 million square miles, according to Amazon.
Both Amazon and Walmart have been ramping up their shipping capabilities, including the use of drones. Earlier this month, Walmart announced it was expanding its drone delivery service to three more states and becoming the first to scale its drone service with Google's Wing across five states.