Amazon aims to reach more customers with a $4 billion investment in rural services

Amazon expansion is expected to create over 100,000 jobs.
(Photo by Adobe Stock)

Amazon is investing $4 billion to expand their rural delivery services, according to the company's senior vice president of worldwide operations, Udit Madan.

The investment is meant to focus on small towns across the U.S. and bring faster delivery to “many millions of customers in less densely populated areas.” Madan wrote, “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 . . . .”

The online e-commerce website PYMNT reported that in 2024 Amazon had “leased, bought or announced plans for over 16 million square feet of new warehouse space in the U.S … adding to its existing footprint of about 413 million square feet of industrial real estate across the country.”

Madan said the expansion would mean more than 200 added delivery stations in rural areas.

Amazon said they want to support local businesses
while reaching customers in more rural areas.
(Photo by ANIRUDH, Unsplash)

“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 our customers in smaller towns,” Madan wrote.

The rural investment will help the company reach new customers in 13,000 ZIP codes over a 1.2 million square mile area. The expansion will also create an estimated 100,000 or more new jobs in the company.