The Amazon smile logo can be seen on the front of the e-commerce giant's new five-story robotic fulfillment center at 2519 Bellevue Ave. in Daytona Beach on Tuesday, March 11, 2025. The city recently issued a certificate of occupancy for the 2.8 million-square-foot distribution facility that was built to speed deliveries locally to the e-commerce giant's customers.
San Diego, California – Amazon announced on Wednesday it will invest over $4 billion by the end of 2026 to expand its delivery network into rural America, tripling the size of its current small-town logistics operation and aiming to cut delivery times in half for millions of Prime customers.
The plan includes adding over 200 new delivery stations, which Amazon says will support deliveries to 13,000 zip codes across 1.2 million square miles—an area roughly the size of Alaska, California, and Texas combined. Once complete, the network can handle a billion more packages annually. The expansion will also create an estimated 170 jobs per site, totaling over 100,000 new jobs and driving opportunities, including roles through Amazon’s Flex and Delivery Service Partner (DSP) programs.
“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, Amazon’s Senior VP of Worldwide Operations.
Amazon’s move could be seen as a welcome development in towns with limited retail access and shrinking brick-and-mortar options. Angie Payton, a nurse from Mansfield, Ohio, said deliveries have become “a lifeline” for her elderly patients, enabling them to order essentials without leaving home. “It’s not just convenient, but preserves their dignity and independence,” she said.
Amazon promises to speed up delivery times and keep costs down. A 2024 study from research firm Profitero found that Amazon prices were, on average, 14% lower than those of other major U.S. retailers.
There’s also a compelling economic argument: according to Amazon, new delivery stations will spur $500 million in additional economic growth in small towns. A study from The Wharton School and Amazon economists found that in counties where the company opened facilities, median household incomes rose by $1,225 and poverty rates fell by up to 3.3%.
Still, critics warn that the expansion may come with long-term costs. Small businesses may face more pressure as Amazon consolidates its hold on local commerce. Others question the quality of many Amazon jobs, especially those relying on gig workers with few protections. While the company touts rural empowerment, it also continues to automate warehouses and slash other delivery partnerships. UPS recently announced 20,000 job cuts, in part due to a significant drop in Amazon business.
The move also raises concerns about Amazon’s growing dominance over the U.S. delivery infrastructure. With the company already poised to surpass UPS and FedEx in total package volume, expanding into underserved areas could cement Amazon’s status as an essential service controlled mainly by a private corporation.
Is this expansion a leap forward for underserved communities or a deeper entrenchment of corporate power? For now, rural Americans may welcome the convenience. But the long-term impact—on jobs, local economies, and market competition—remains to be seen.
