Amazon wants to help entrepreneurs start their own delivery companies

midian182

Posts: 9,769   +121
Staff member
What just happened? Amazon has long been trying to lessen its reliance on delivery companies such as FedEx and UPS. Now, the retail giant is expanding its own delivery service by helping entrepreneurs launch businesses that make sure Amazon.com items complete those last-mile journeys to customers.

Amazon’s new program, called Delivery Service Partners, offers startups an opportunity to grow a successful package delivery business. The company will lease dark-grey vans sporting the Prime logo on “attractive terms.” Firms will also receive other support from Amazon, including discounts on uniforms, fuel, insurance, and more.

Amazon said interested partners could start a business with “as little as $10,000”—not including the cost of hiring drivers—and no logistics experience is required. It expects to see operators with 20 to 40 vans employ around 100 drivers, with the larger businesses able to earn up to $300,000 per year in profits.

Businesses will pick up Amazon packages from one of its 75 US delivery stations before transporting them to buyers. The company said its vans could only be used for Amazon deliveries, though partners can deliver for other companies when using different vehicles. It never specified if it would be paying the firms on a per delivery, mile driven, or per month basis.

The program brings advantages to Amazon customers, too. More shoppers will be able to track their deliveries on a map, contact the drivers, and change where the packages are left.

Back in March, Donald Trump tweeted that Amazon was scamming the US Postal Office, and that it should pay the agency more for shipping its packages. Dave Clark, Amazon's senior vice president of worldwide operations, says the new program isn’t a response to the President’s remarks.

Permalink to story.

 
If you have to pay to work for somebody, it's a scam kid.

It's a common business to purchase and maintain your own small fleet of trucks and hire your own drivers to handle deliveries from big and small companies...Amazon is targeting these type entrepreneurs plus tossing a few extra incentives in to sweeten the deal...aside from the part where you have to lease the Amazon vehicles, depending on the cost versus having your own pick. On the flip side, you're guaranteed a steady revenue stream from Amazon deliveries.
 
If you have to pay to work for somebody, it's a scam kid.

You obviously don't understand anything about starting a business...or even what a business is if you think someone would be a simple amazon employee here. Those in the large cities where there are amazon warehouses would do very well as long as the lease pricing for vehicles is fair. The minimal $10,000 included hiring employees. There would be business fees and state licencing to get done.
 
In my rural area, all the FedEx deliveries are made by contractors that drive their own delivery vans. Some have the FedEx logo on them, some like like small rental trucks. So, Amazon is not reinventing the wheel with this move.
 
In my rural area, all the FedEx deliveries are made by contractors that drive their own delivery vans. Some have the FedEx logo on them, some like like small rental trucks. So, Amazon is not reinventing the wheel with this move.

Likely because it's cheaper that way. This Amazon move is no different. Amazon wants cheaper delivery so you will either be getting paid less or you are going to have to come up with some way to do a better job than the big carriers.
 
If you have to pay to work for somebody, it's a scam kid.

The businesses won't be working for amazon. They will be partners with amazon. There's a difference. Also, like others have mentioned, business owners ALWAYS have to invest money to start up and sustain. They aren't employed by anyone. That's the trade-off.
 
It's no different that today's purchase of a pharmaceutical distribution company. The Amazon rep said "medical expenses are rising just too fast" ..... interpretation is that Amazon wants to get in on that now so they can reap some of those overcharges ......
 
In my rural area, all the FedEx deliveries are made by contractors that drive their own delivery vans. Some have the FedEx logo on them, some like like small rental trucks. So, Amazon is not reinventing the wheel with this move.
FedEx Ground driver here. FedEx Ground is contracted. Freight and Express are true FedEx. FedEx Ground drivers are some of the worst paid drivers in the industry.
 
Back