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SEATTLE - Amazon (NASDAQ:AMZN), the $2.21 trillion market cap retail giant, announced plans to expand its Same-Day and Next-Day Delivery services to tens of millions of customers in more than 4,000 smaller cities, towns, and rural communities across the U.S. by the end of 2025. According to InvestingPro, Amazon maintains a strong financial health rating and has demonstrated solid revenue growth of 10.08% over the last twelve months.
The expansion aims to provide faster delivery options to rural customers who typically have limited access to brick-and-mortar retailers and fewer delivery choices. According to the company, the number of items delivered same or next day in the U.S. has increased over 30% compared to the same period last year. This expansion aligns with Amazon’s strong market position, which InvestingPro analysis confirms through multiple financial indicators - discover 10+ more exclusive insights with a subscription.
"Whether you live in Monmouth, Iowa or in downtown Los Angeles, now you’re going to have the same fantastic Amazon customer experience," said Doug Herrington, CEO of Worldwide Amazon Stores, in a statement.
The company will focus on delivering everyday essentials, including groceries and household goods. Amazon reported that in the first quarter of 2025, its everyday essentials selection grew more than twice as fast as all other categories in the U.S.
To support this expansion, Amazon plans to invest over $4 billion to triple the size of its delivery network by the end of 2026. The company will transform existing rural delivery stations into hybrid hubs that store inventory on-site and prepare packages for final delivery. With diluted earnings per share of $6.14 and operating with moderate debt levels, Amazon appears well-positioned to fund this expansion. For detailed financial analysis and Fair Value estimates, check out the comprehensive Pro Research Report available on InvestingPro.
Each new facility will create an average of 170 jobs at the delivery stations, plus additional driving opportunities, according to the company. Full-time roles at Amazon delivery stations provide an average hourly wage nearly triple the federal minimum wage with benefits starting on day one.
Prime members have access to unlimited free Same-Day Delivery on orders over $25.
This information is based on a press release statement from Amazon.
In other recent news, Amazon has seen significant developments across various fronts. Oppenheimer raised its price target for Amazon to $250 from $215, citing improved margin expectations and maintaining an Outperform rating. The firm highlighted Amazon’s strong e-commerce performance, with growth outpacing overall retail. Additionally, Amazon is requiring some employees to relocate closer to their managers, affecting thousands of workers and contributing to ongoing concerns about job security amidst cost-cutting measures. CEO Andy Jassy indicated potential workforce reductions as the company integrates generative AI technologies to enhance operational efficiency. Amazon also announced its Prime Day event will extend to four days in 2025, offering Prime members increased shopping time. Furthermore, Amazon is exploring the possibility of issuing its own stablecoin, a move that could disrupt traditional banking systems. The final decision on this initiative will depend on the progress of the Genius Act, which seeks to establish a regulatory framework for stablecoins.
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