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Amazon Driver Florida Ave
(Tom Williams/Getty Images)

Amazon expands same-day shipping to over 4,000 rural towns in massive delivery push

The e-comm giant plans to triple its delivery network by 2026 and is zeroing in on everyday essentials.

Nia Warfield
6/24/25 11:50AM

Amazon is making a big move into small cities. In a press release Tuesday, the company said it plans to roll out same-day and next-day delivery to over 4,000 smaller cities, towns, and rural communities by the end of this year.

The expansion is part of a broader $4 billion effort to triple the size of its delivery network by 2026 and pull ahead in its race with legacy rivals like UPS and FedEx. The company added that the number of items delivered using same- or next-day in the US are already up over 30% compared to last year.

Amazon is especially focused on delivering everyday essentials (think: toilet paper, pet food, household goods), using AI to forecast demand and pre-stock top-selling items closer to customers.

The strategy is paying off: in Q1, Amazon said its everyday essentials category grew more than twice as fast as the rest of its business and accounted for a third of every unit sold in the US.

Amazon shares were up more than 2% Tuesday afternoon.

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Tesla jumped more than 2% premarket on Friday after the company proposed an unprecedented roughly $1 trillion pay package for CEO Elon Musk, according to proxy filings.

To receive the massive payout, Musk will have to increase the company’s market cap to $8.5 trillion from the approximately $1 trillion it is today over the next 10 years.

The pay package also requires that Musk expand Tesla’s product offerings to include 1 million Robotaxis in commercial operation and the “delivery of 1 million AI Bots.” Currently the company has about 30 autonomous robotaxis in its invite-only Austin ride-hailing service, though this week the company expanded the waitlist for the service to everyone. Tesla's Optimus robots are still under development.

Musk would also have to take part in his own succession planning and develop a framework for who’s to follow him.

Investors have historically tied the fate of Tesla with Musk, so holding on to him for an extended period of time and having his blessing for the succession plan is typically seen as good news for the stock.

“We believe that Elon’s singular vision is vital to navigating this critical inflection point,” the filing reads. “Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”

A judge twice struck down Musk’s previous $56 billion compensation package. Last month the board approved a $30 billion interim pay package, saying that “retaining Elon is more important than ever.”

Shareholders will vote on the pay package at their annual meeting on November 6.

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Gap pops as the denim giant takes a big swing into beauty and accessories

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