Amazon’s new program to help entrepreneurs set up their own delivery business

Gladys Abbott
July 2, 2018

Amazon did not provide details about the incentives, nor did it explain whether it would pay for business per trip, per mile or per month.

There is a start-up cost of $10,000, however.

The new scheme could come in handy for those who felt uncomfortable on many counts with the existing Amazon Flex program where some of the Uber drivers were recruited to make the last mile deliveries and it posed many bottlenecks for them.

Probably not. There are more packages to be delivered besides the ones shipped by Amazon. It's also trying to figure out how to move merchandise directly from merchants to consumers to avoid overwhelming its own warehouses with inventory, according to documents reviewed by Bloomberg.While Amazon has long relied on the US Postal Service, United Parcel Service and FedEx, it has also sought more control over the logistics of package delivery, using its own technology and data-crunching abilities, as well as facilities and transport, to move packages more efficiently.

Dubbed "Delivery Service Partners", the program allows companies to run their own parcel delivery fleet with up to 40 vehicles and 100 employees and is geared specifically for small- to medium-sized businesses (SMBs), per Business Insider.

Amazon's Delivery Service Partners already has 7,000 of its own trucks and 40 airplanes which, along with external delivery partners, shipped more than 5 billion Prime items past year.

More news: Why Did Lebron James Go to the Lakers Instead of the Sixers?

The announcement follows public criticism of Amazon by President Donald Trump over the company's arrangement with the US Postal Service.

Those signing up will not require previous logistics experience and will receive discounts on branded uniforms, fuel, comprehensive insurance coverage and more.

Amazon already works with hundreds of third-party courier companies that hire and manage their own fleets of drivers, but they did not disclose to Business Insider's whether its relationship with its current delivery service providers would change. Amazon is also setting aside $1 million to help military veterans interested in starting their own delivery businesses.

But labor professors say the arrangement allows Amazon to reap the benefits of a vast delivery network without having to shoulder numerous risks and liabilities involved.

Amazon set up a website, Logistics.Amazon.com, where entrepreneurs can apply for the program. But keep in mind that those vans can only be used to deliver Amazon packages.

"You choose the pace at which you want to grow, and you get an opportunity to be a business leader in your community", Dave Clark, the senior vice president of Amazon's worldwide operations, told CNNMoney. They haul goods between shipping centers and bear Amazon logos, but don't show up at customers' doorsteps.

Other reports by LeisureTravelAid

Discuss This Article

FOLLOW OUR NEWSPAPER