Amazon could start new service for rural deliveries in US: Report

The potential start of a new service by Amazon for rural communities in the US could affect the revenue of the US Postal Service.

San Francisco: Amazon could start a new delivery business to serve rural communities in the US, thereby reducing dependence on the US Postal Service, The Information reported.

While Amazon has not confirmed the news yet, The Information report on Monday detailed the requirement of some job postings that have since been deleted.

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These now deleted job postings described “a new delivery business … that will support Amazon’s rural communities.”

The report comes at a time when Amazon is investing heavily in warehouses and logistics network.

On the company’s third quarter earnings call last week, Amazon’s chief financial officer Brian Olsavsky said that the company expects to grow its fulfillment and logistics network square footage by approximately 50 per cent this year, which includes significant additions to its fulfillment centers, as well as its transportation facilities.

The potential start of a new service by Amazon for rural communities in the US could affect the revenue of the US Postal Service.

The Washington Post reported in September that the postal service delivered 1.54 billion Amazon packages in fiscal year 2019 — nearly 30 per cent of the e-commerce giant’s total volume last year.

Without confirming or denying The Information report, an Amazon spokesperson told The Verge that the company’s “incredible employees and partners come together to deliver for our customers — every day and throughout the holiday season. This includes offering fast, free and convenient delivery options for customers provided by our transportation partners, and our internal delivery teams.”