Amazon will spend $4B to expand U.S. rural delivery network

Amazon announced that it will invest $4 billion by the end of 2026 to build out its delivery network across rural areas in a bid to speed up shipping times for smaller towns across the U.S.

The company said the investment will create more than 100,000 new jobs and bring its rural delivery network footprint to more than 200 delivery stations.

“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,” Udit Madan, SVP of WorldWide Operations, said in a blog post.

The announcement comes just after UPS said it is cutting 20,000 jobs as it reduces its Amazon shipping and delivery volumes.

Amazon has been building up last-mile capabilities, including the growth of its Delivery Service Partner program. The company said last year that it planned to invest another $2.1 billion in its DSP program, including steps to boost financial outcomes for independent delivery firms and the drivers they employ to deliver its packages.

Amazon also relies on its Flex gig worker program to get packages to customers.

The $4 billion investment announcement follow a public spat this week between Amazon and the White House over a report that the company planned to display tariff-related costs to consumers, which Amazon disputed.

Amazon reports its first quarter earnings on Thursday.