The proposed expansion, which will eventually see a total of about 1,500 facilities, will reportedly be used to bring products closer to customers and make the process of shopping online similar to a quick run to the grocery store.
In addition, the move will allow the company to take on rivals like Walmart and Target, who have been able to offer same-day delivery of online orders to customers through their brick-and-mortar stores.
Walmart also unveiled a new potential threat to Amazon on Tuesday, its long-awaited membership program, Walmart+.
Amazon pledged earlier this year to get as many products to Prime subscribers on the same day as possible, an effort that has since been hindered due to the coronavirus pandemic despite the e-commerce giant's latest hiring efforts to keep up with demand.
The retail giant has reportedly shied away from competing with Walmart and other suburban companies in the past, but CEO Jeff Bezos is doubling down by investing billions of dollars into rapid delivery services as the holiday season approaches.
While an Amazon spokesperson did not confirm the plans, the company has said its last-mile delivery efforts are meant to supplement its long-time partners rather than replace them.
"Our dedicated last-mile delivery network just delivered its 10 billionth package since launching over five years ago, and we’re proud to provide a great service for our customers,” the spokesperson told FOX Business in a statement.
The proposed expansion announcement follows plans this week to hire 100,000 workers in the United States and Canada to keep up with demand. Amazon also said earlier this month it will be adding 33,000 new corporate jobs.
The company's net sales, fueled by the surge in demand from the pandemic, increased 40% to $88.9 billion in the second quarter, compared with $63.4 billion in the second-quarter of 2019.