Move over UPS truck: Amazon delivery vans to hit the street
Jul 01, 2018, 00:55
The e-commerce behemoth announced on Thursday its new Delivery Service Partnersprogram - created to let entrepreneurs run their own local delivery networks of up to 40 vans emblazoned with Prime logos. Get together $10,000 in startup funding, apply through Amazon and the company will help you to start your own business.
Those who succeed in the new Amazon delivery program can earn as much as $300,000 in annual profit by operating a fleet of as many as 40 delivery vehicles, according to Amazon.
The partner companies can only deliver Amazon packages from the branded vans, but they're allowed to add their own non-Prime vehicles and pick up work for other companies.
A brochure about the new program details everything that interested would-be shipping magnates will need to launch their delivery business, and that means purchasing vans, handheld devices, uniforms, auto insurance, fuel cards, and hiring drivers. They can then have up to 40 Amazon-branded trucks and 100 drivers who will transport packages from Amazon centers to the doorsteps of customers. "As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses".
Amazon has been looking for ways to cut costs on the "last mile" of deliveries, which is often the most expensive part of the fulfillment process.
Amazonsaid current delivery service providers would have access to the new discounts as well.
What just happened?Amazon has always been trying to lessen its reliance on delivery companies such as FedEx and UPS. President Donald Trump accused Amazon of giving the Postal Service a raw deal earlier this year, CNN pointed out.
Amazon's new "Delivery Service Partners" and their staff members won't be employed by the tech company.
Amazon isn't providing an estimate for how many or how long it will take to get more delivery stations built in order to get packages to these new 10s of thousands of delivery drivers.
It's the latest attempt by Amazon to gain greater control of the delivery network at the core of its Prime business, which ships 5 billion packages a year globally.
Amazon has built up a fleet of more than 6,000 trailers and almost three dozen cargo jets to bulk up its long-range delivery network.
He hired more than 40 workers in five months, Abimbola said. USPS said in its annual report past year that its revenue growth "is driven entirely by increases in shipping and packages". "I was driving for Amazon Flex when I learned about the opportunity to start my own delivery company".
It could also improve Amazon's relationship with customers.
The program brings advantages to Amazon customers, too.
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