Amazon has quietly rolled out over 30 warehouses this year in rural and 'super rural' areas as it looks to take more delivery share from UPS and the US Postal Service
The rural expansion has been a"key initiative" for Amazon's last-mile delivery operation this year.Amazon is quickly ramping up its warehouse presence in more remote areas of the US, part of an ambitious bid to handle more deliveries itself and rely less on UPS and the US Postal Service.
The project, part of the Global Delivery Services unit managed by SVP John Felton, has been a"key initiative" this year for Amazon's last-mile delivery team, another person said. The people who spoke with Insider asked not to be identified discussing private plans.
The rural and super rural locations Amazon expanded into vary in size and population. Some cities, like Chico, CA, have roughly 100,000 residents, while Edinburg, VA has a population of just about 1,000. Wichita, KS, is a big college town where demand is high, one person said. Amazon already processes 78% of its orders in the US, with most of the rest handled by USPS and UPS, according to ShipMatrix. Amazon's share of parcel volume in the US grew from 13% in 2018 to 21% in 2020, Pitney Bowes estimates.
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