Amazon.com Inc. announced a massive expansion of its same-day delivery network on September 16, 2026. The initiative, codenamed Project Mercury, will increase fulfillment centers from 85 to over 1,000 by 2031. This strategy aims to place inventory within a 10-mile radius of 80% of U.S. Prime subscribers.
The company allocated $6.8 billion for U.S. capacity expansion through 2026 and 2027. This move directly challenges Walmart’s market share in groceries and daily essentials. Internal projections suggest Project Mercury will generate $7.1 billion in economic value over the next decade. Amazon expects the initiative to achieve positive cash flow by 2030.
Amazon currently maintains a Price-to-Sales ratio of approximately 3.5x. This valuation indicates that the market expects significant future growth from the company. The investment aligns with these expectations even as the firm remains cash-flow-negative. High capital spending makes traditional earnings-based valuations less relevant for the company at this time.