Amazon creates an independent parcel delivery network
Amazon creates an independent parcel delivery network
Getty Images | Aaron P. Bernstein
02 July, 2018, 00:15
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.
With these vans on the road, Amazon said more shoppers would be able to track their packages on a map, contact the driver or change where a package is left - all of which it can't do if the package is in the back of a UPS or FedEx truck.
"We have great partners in our traditional carriers and it's exciting to continue to see the logistics industry grow", said Dave Clark, Amazon's senior vice president of worldwide operations.
The latest initiative is particularly important as more customers sign up for Prime Now, stoking demand for two-hour deliveries, said Colin Sebastian, an analyst with Robert W Baird & Co., in a note to clients.
Amazon says it will offer support to business owners and those wanting to start a delivery business, including discounts on insurance, technology and other services.
Amazon is starting its own delivery service in an effort to reduce its reliance of UPS, FedEx an the post office. And now, the online retail giant is expanding its network of package delivery couriers by allowing the couriers to run their own delivery networks.
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Contractors don't have to lease the vans, but if they do, those vehicles can only be used to deliver Amazon packages, the company said. 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.
Clark said that the new program will supplement Amazon's existing shipping setups, and that all its usual relationships with partners, including the USPS, will remain intact.
"We don't have to go make sales speeches", Abimbola said.
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. The contractor will be responsible for hiring delivery people, and Amazon would be the customer, paying the business to pick up packages from its 75 US delivery centers and dropping them off at shoppers' doorsteps.
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