Amazon to expand Prime delivery services in smaller cities, rural areas in US by year end
Amazon plans to expand its same-day and next-day Prime delivery services to over 4,000 smaller cities and rural areas in the U.S. by the end of 2025. The company aims to enhance its domestic footprint with a $4 billion investment in its rural delivery network by 2026. This initiative is expected to increase consumer demand in these regions, as Amazon has already noted a rise in purchase frequency and spending on household essentials. With over 200 million Prime members, the expansion is part of Amazon's strategy to boost subscriber growth and performance.
June 24 (Reuters) - Amazon.com (AMZN.O) plans to expand its same-day and next-day Prime delivery services to over 4,000 smaller cities and rural regions in the United States by the end of 2025, it said on Tuesday, as the company doubles down on efforts to grow its domestic footprint.
Amazon earlier this year announced plans to spend more than $4 billion to grow its U.S. rural delivery network by the end of 2026, promising faster shipments to drive up demand from consumers in small towns and the countryside.
The company said it was already seeing customers purchase more frequently and shop for household essentials at higher rates since it started offering faster deliveries in these regions.
With more than 200 million paid Amazon Prime members worldwide, Prime has become a key growth engine for the company. In a bid to boost Prime’s performance, Amazon has focused on expanding geographically while also offering discounts to younger shoppers to grow its subscriber base.
