Amazon delivery plan gives people chance to own package delivery business

Jermaine Castillo
July 1, 2018

The e-commerce behemoth announced on Thursday its new Delivery Service Partners program - created to let entrepreneurs run their own local delivery networks of up to 40 vans emblazoned with Prime logos. The tech titan notes that it can cost as little as $10,000 for someone to start the delivery business, and that the company offers support to help entrepreneurs grow their business. The company will funnel $1 million to funding startup costs for military veterans and also offer $10,000 in reimbursement for what it deems to be "qualified candidates".

The company says delivery partners who are accepted into the program could earn about $300,000 in annual profits operating a fleet of up to 40 delivery vehicles. Amazon is also offering pre-negotiated deals on things like Amazon-branded vehicles customized for delivery, branded uniforms, and comprehensive insurance coverage. "We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in the e-commerce package delivery", Dave Clark, Amazon's senior vice president of worldwide operations, said.

As part of the plan, announced Thursday, the new small delivery businesses can get training from Amazon and make use of its logistics technology.

This initiative comes after President Donald Trump in recent months has criticized Amazon for getting the U.S. Postal Service to deliver Amazon packages at bargain prices.

World Cup match report Mexico v Sweden 27 June 2018
Brazil struggled in its opening two matches, first held to a 1-1 draw and then needing late goals to win the other. Ivan Perisic scored a late victor to send the Eastern Europeans through to the next stage of the competition.

Amazon said current delivery service providers would have access to the new discounts as well. Algorithms will determine which packages are sent to these delivery stations, and which are sent to other delivery partners, like FedEx and UPS.

The new program goes a huge step beyond the gig economy side-hustle that is Amazon Flex.

"Amazon's new delivery program will afford the company more "last mile" capability and control, and as a result, is credit positive".

"I am right about Amazon costing the United States Post Office massive amount of money for being their Delivery Boy " he later wrote on April 3. But as it's helping entrepreneurs, Amazon is also helping itself gain greater control over its own logistics network. Each entrepreneur will oversee 40 to 100 employees who will use 20 to 40 Amazon-branded vans to deliver packages year-round, using Amazon's own logistics systems to facilitate the process.

Spurs Open To Trading Kawhi Leonard To Lakers
The Lakers believe that landing Leonard could help them attract free agents like LeBron James and Paul George this offseason . As the gulf between the San Antonio Spurs and Kawhi Leonard grows, the race to land the All-Star forward is pushing forward.

Walmart plans to expand same-day grocery delivery to more than 40 per cent of US households, or 100 metro areas by year's end.

While Amazon won't disclose the financials behind the new program, Clark says it's "much more about customer experience and meeting overall growth".

The company has been building up its own fleet of 7,000 of trucks and 40 airplanes to cover the "middle mile" of delivery.

Saudi Arabia beat Egypt despite Salah strike
El Hadary saved Fahad Al Muwallad's first-half penalty but Salem Al Dawsari scored a victor for Saudi Arabia in stoppage time. As much as you hate to see matches that are ultimately meaningless in the World Cup , they can bring some phenomenal moments.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER