Amazon plans to triple its network of distribution hubs in rural U.S. areas to get deliveries to customers faster in the face of climbing consumer prices and tariff uncertainty.
The Seattle-based e-commerce giant announced a $4 billion plan to expand its reach to 200 delivery outposts in the nation's least populated regions by the end of next year. Such an effort could create 100,000 jobs, the firm said.
Amazon said the investment will help deliver another 1 billion packages a year across 13,000 additional ZIP codes — an area the size of Alaska, California and Texas combined.
"Amazon is adding same-day delivery sites and adding additional robotics and automation throughout our buildings," CEO Andy Jassy said during the company's earnings call Thursday. "You'll also see us expand the number of delivery stations that we have in rural areas of the U.S. so we can get items to people who live in less densely populated areas much more quickly."
The geographic expansion "drives more in-stock selection, reduces travel distances and speeds up delivery," the CEO added.
Jassy said that adding same-day delivery sites, expanding to rural areas and automating the company’s warehouses with robots and other technology is key to keeping costs low during uncertain times.
Amazon reported $155.7 billion in revenue for the first quarter, up nearly 9% from the year-earlier quarter and higher than the $155 billion expected by analysts.
The earnings report came a few days after Amazon shot down reports of potential plans to start listing the added costs of tariffs on the prices of its products.
“It's hard to tell what's going to happen with tariffs right now; it's hard to tell where they're going to settle and when they're going to settle,” said Jassy. “There's never been a more important time in recent memory than trying to keep prices low, which we're heads down, pretty maniacally focused on, and then get things to people quickly.”