Amazon Wants to Foster Small Independent Delivery Fleets

Amazon Wants to Foster Small Independent Delivery Fleets

Amazon Wants to Foster Small Independent Delivery Fleets

Amazon is also taking a big leap in the delivery business.

The business owners - who don't need logistics experience, Amazon notes - will be offered discounts on the customized delivery vans, branded uniforms, fuel, comprehensive insurance coverage, and more - deals the retailer pre-negotiated on their behalf.

This new last-mile delivery program is in addition to Amazon Flex, a delivery program in more than 50 USA cities that operates similarly to Uber or Lyft, with temporary employees delivering parcels from their own vehicles for $18 to $25 an hour.

Amazon announced Thursday a new initiative to expand its delivery network, in an attempt to diversify its dependency on the nation's postal service which President Donald Trump has criticized. Yahoo Finance's Seana Smith, Dion Rabouin, Myles Udland and Dan Roberts discuss.

The e-commerce company said "successful owners" can earn up to $300,000 annually with a fleet of up to 40 delivery vehicles. Amazon now allows delivery workers to take packages straight into shoppers' homes or, in some cases, their parked cars. It's also setting aside $1 million to specifically recruit and help military veterans become partners. Amazon would essentially be the customer for the businesses, as it would pay the contractors for pick-up and delivery from its 75 USA delivery centers.


Delivery Service Partners can start their own business with investments from $10,000, it said.

Amazon (NASDAQ:AMZN) is introducing a new delivery system that will challenge UPS (NYSE:UPS) and FedEx (NYSE:FDX).

Then there's the political cost: President Trump, in tweets, has attacked Amazon for "costing the United States Post Office massive amounts of money for being their Delivery Boy". They operate their own businesses and hire their own employees, though Amazon requires them to offer healthcare, paid time off, and competitive wages. USPS said in its annual report previous year that its revenue growth "is driven entirely by increases in shipping and packages".

Amazon has been slowly building out its own delivery system over the past few years as a way to better control its logistics chain. Amazon makes sure packages get to distribution centers in each city, but those other carriers bring the goods between those centers and customers' doorsteps. This measure could theoretically help Amazon control those costs by working with small businesses that rely on, but do not directly work for, Amazon. "We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery".

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