Amazon has been standing out for years for its speed in deliveries. What started as a competitive advantage has now become a basic expectation for its customers. However, Amazon has just taken another step that could mark a turning point in the competition with Walmart.
The company has confirmed a multi-billion dollar investment to expand its distribution network in rural areas of the United States. This is a strategy designed not only to shorten logistical distances but to consolidate its dominance in retail against its biggest rival, the American chain Walmart. With this decision, Amazon aims to overcome one of the biggest obstacles it had left: the difficulty of reaching the country's less populated areas.
Amazon surprises with its latest move
Until now, one of Amazon's weak points was distribution in rural territories. Deliveries in those areas required more time, more resources, and were less profitable. This meant that many users couldn't enjoy the speed that characterizes the Prime service.
The company has announced that it will triple its network of logistics centers in rural regions, investing 4 trillion dollars in them. The goal is to have 200 new delivery points before the end of 2026. This expansion will allow millions of people to receive their orders with the same agility as those living in urban areas.
In addition to improving access, this plan includes the creation of 100,000 new jobs in the United States. Amazon's CEO, Andy Jassy, also confirmed that automated technologies are being incorporated to optimize processes and keep operational costs low.
Direct competition with Walmart
Walmart has historically been stronger in the area of basic products and food, especially in small communities. In many cases, its prices remain lower than Amazon's. But that advantage is threatened if Amazon manages to shorten delivery times and improve coverage in less accessible areas.
The rural expansion plan not only strengthens Amazon's logistics but also weakens one of Walmart's strong points: its physical presence throughout the United States. By ensuring fast deliveries even in remote places, Amazon can attract customers who until now relied exclusively on physical stores.
The company has shown no signs of slowing down this offensive. With revenues exceeding 155 billion dollars in the last quarter, Amazon has the financial muscle needed to keep up the pressure. The message is clear: it wants to lead not only online commerce but the entire retail market, and it is willing to invest what is necessary to achieve it.