- Same-day grocery delivery to reach over 1,000 US cities by year-end, with ambitions to hit 2,300 cities soon after.
- Amazon’s aggressive investments in logistics signal a commitment to outpacing rivals in speed, reach, and customer experience.
As the holiday season approaches, Amazon is making strategic moves to solidify its dominance in fast delivery, announcing over $4 billion in new investments to boost its sprawling transportation and logistics network, particularly in rural America.
CEO Andy Jassy revealed that Amazon has already increased the reach of its Same-Day and Next-Day delivery services to 60 per cent more rural communities this year—serving areas often neglected by other carriers.
“These are small towns where people want fast delivery, but where other companies have been backing out and reducing service,” Jassy said. “We’re only halfway to our year-end goal.”
Strengthening the DSP Network
Central to Amazon’s delivery push is a further $1.9 billion investment in its North America Delivery Service Partner (DSP) program, raising total investment to $S16.7 billion over the past seven years. This initiative supports safety, driver training, and new tech for Amazon’s army of small-business logistics contractors, further improving last-mile efficiency.
The company is on pace to deliver to Prime members at record speed for the third year in a row—including the introduction of three-hour delivery windows in select US cities.
Grocery delivery gets a boost
Amazon’s logistics expansion isn’t limited to parcels. Same-day grocery delivery will reach over 1,000 US cities by year-end, with ambitions to hit 2,300 cities soon after. A recently launched “add-to-delivery” button, used over 80 million times, lets customers bundle last-minute grocery and regular orders—a move Jassy says drives increased customer retention, especially among fresh food buyers.
To support heightened holiday demand and broader coverage, Amazon plans to hire 250,000 US seasonal workers. Meanwhile, fulfillment efficiencies have helped Amazon absorb $4.3 billion in legal and severance charges, maintaining margins even during rapid expansion. The North America segment, which includes much of Amazon’s logistics operations, posted $106.3 billion in sales for the quarter—an 11 per cent year-over-year gain.
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