Amazon creates an independent parcel delivery network

Marcus Newton
July 2, 2018

Dave Clark, Amazon's senior vice president of worldwide operations, said the new program is not a response to the president, but a way to make sure the company can deliver its growing number of orders.

Amazon said in a release that owners of these delivery businesses have the potential to earn as much as $300,000 in annual profit operating a fleet of up to 40 delivery vehicles.

The ecommerce giant is seeking to assist hundreds of new small businesses to employ tens of thousands of delivery drivers across the U.S. by providing discounted vehicles, fuel, insurance, uniforms and access to "sophisticated delivery technology", the Seattle-based company said in a statement on Thursday.

Amazon announced on Wednesday (June 27, 2018) that it would provide incentives to attract entrepreneurs to create their own small parcel delivery company as part of Amazon's latest effort to tackle the big problem of shipping goods to customers in one country such as the United States of America.

The Amazon Delivery Service Partner gives entrepreneurs discounted benefits such as Amazon-branded vehicles, branded uniforms, as well as other perks such as insurance coverage, and others all for a minimum investment of $10,000. Believe it or not you can get going for as little as $10K and Amazon is committing $1M for military veterans to help them get started.

These businesses will be treated as Amazon's Delivery Service Partners and will receive support from the ecommerce major.

Using workers who are closely connected to Amazon and can represent it but who are not actual Amazon employees hits a sweet spot for the company. Taking more control over that growth, the web retailer offered to help anyone who wants to start their own delivery businesses.

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"We don't have to go make sales speeches", Abimbola said.

"I had prior experience running my own business but not in logistics".

To apply, head to the Amazon Logistics website.

The new business would be responsible for hiring staff, and Amazon would be the customer, paying for the deliveries.

The independent contractor owner-operator model is similar to how FedEx handles its last-mile deliveries, while UPS delivery trucks are staffed by unionized employees, Blackledge writes.

What do you think about Amazon's new plan?

Other reports by MaliBehiribAe

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