Amazon Targets 500 Cities for Drone Delivery Expansion by 2026

Amazon's Prime Air is expanding its drone delivery ambitions, aiming to reach almost 500 cities and towns in the U.S. by the end of 2026. This move would significantly extend the service's current coverage area and bring 30-minute delivery to millions more customers.

The company boasts that it has already delivered hundreds of thousands of products via drone this year, with each Prime Air location currently covering an area of approximately 175 square miles. The expansion plans include rolling out services soon in Chicago, Syracuse, Cleveland, Atlanta, and Boise, among other communities later this year.

The larger story for investors is the scaling up of Amazon's drone delivery efforts. For years, the service has been considered an experiment, but now it's being integrated as a meaningful element of Amazon's last mile network, where speedier delivery can help keep Prime subscribers engaged. The expansion also heightens the stakes in Amazon's delivery war with Walmart, which is substantially investing in its own blend of drones and traditional delivery.