financetom
Business
financetom
/
Business
/
Amazon to invest $4 billion to expand rural delivery network in US
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Amazon to invest $4 billion to expand rural delivery network in US
May 25, 2025 10:25 PM

(Reuters) - Amazon.com ( AMZN ) said on Wednesday it would spend more than $4 billion to expand its U.S. rural delivery network by the end of 2026, doubling down on faster shipments to drive up demand from shoppers in small towns and the countryside.

The investment will grow its rural delivery network to more than 200 delivery stations and create 100,000 jobs, the company, which is among the largest private employers in the U.S, said in a statement.

Faster shipping has become a cornerstone of Amazon's ( AMZN ) strategy, with the company pouring billions into its logistics network to stay ahead of rivals including Walmart and Target.

"Once the 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," Amazon ( AMZN ) said.

Shares of the company, set to report quarterly earnings on Thursday after markets close, were up 3% in extended trading following strong results from Meta and Microsoft.

The move will triple the size of the rural delivery network and cut average delivery times "in half," Amazon ( AMZN ) said.

For each new facility opened, the company estimates an average of 170 jobs will be created at the delivery stations.

Earlier this month, Bloomberg News reported that Amazon ( AMZN ) is considering a $15 billion warehouse expansion plan for about 80 new logistics facilities in U.S. cities and rural areas.

(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
French prosecutors probe Musk's X over alleged algorithmic bias
French prosecutors probe Musk's X over alleged algorithmic bias
Feb 7, 2025
PARIS (Reuters) - French prosecutors said on Friday they have opened an investigation into Elon Musk's X social media platform over alleged algorithmic bias. News of the probe comes just days before a major AI summit in Paris, which is due to host global leaders including U.S. Vice President JD Vance and Indian Prime Minister Narendra Modi, as well as...
BofA CEO Moynihan's pay increases to $35 million in 2024
BofA CEO Moynihan's pay increases to $35 million in 2024
Feb 7, 2025
(Reuters) -Bank of America Corp ( BAC ) increased the compensation for Chief Executive Officer Brian Moynihan by roughly 21% to $35 million for 2024, the lender said in a filing on Friday. That compares with Moynihan's pay of $29 million in 2023. Last month, the lender's fourth-quarter profit beat expectations as its traders benefited from a flurry of activity...
French prosecutors probe Musk's X over alleged algorithmic bias
French prosecutors probe Musk's X over alleged algorithmic bias
Feb 7, 2025
PARIS, Feb 7 (Reuters) - French prosecutors said on Friday they have opened an investigation into Elon Musk's X social media platform over alleged algorithmic bias. News of the probe comes just days before a major AI summit in Paris, which is due to host global leaders including U.S. Vice President JD Vance and Indian Prime Minister Narendra Modi, as...
Beyond Oil Expands into Sweden with 5-Year Distribution Agreement
Beyond Oil Expands into Sweden with 5-Year Distribution Agreement
Feb 7, 2025
04:34 PM EST, 02/07/2025 (MT Newswires) -- Beyond Oil ( BEOLF ) , a food-tech innovation company dedicated to reducing health risks associated with fried food, after close of trade Friday announced a distribution agreement with Click Lab AB, for the distribution of the company's oil filtration product in Sweden. Under the terms of the Distribution Agreement, which became effective...
Copyright 2023-2026 - www.financetom.com All Rights Reserved