Amazon Plans Independent Package Delivery Business

01 July, 2018, 00:55 | Author: Regina Lloyd
  • Modal Trigger					
				Dave Clark Amazon's senior vice president of worldwide operations and an Amazon delivery van.			Reuters

This initiative comes after President Donald Trump in recent months has criticized Amazon for getting the U.S. Postal Service to deliver Amazon packages at bargain prices.

As little as $10,000 is needed to get started and logistics experience was not required, according to its website, where interested individuals can apply for the program. Right now, UPS, FedEx, and the U.S. Postal Service deliver most of Amazon's packages. Yahoo Finance's Seana Smith, Dion Rabouin, Myles Udland and Dan Roberts discuss.

Amazon says "successful owners" can earn $300,000 in annual profit running a 40-vehicle delivery fleet. Past year it introduced Amazon Flex, which allows independent drivers to pick up shifts delivering packages around town.

Olaoluwa Abimbola, one of Amazon.com's beta participants in a new delivery business offering, talks to reporters, Wednesday, June 27, 2018, in Seattle, at a media event for Amazon to announce a new program that lets entrepreneurs around the country launch businesses that deliver Amazon packages. To help keep startup costs as low as $10,000, entrepreneurs will also have access to a variety of exclusively negotiated discounts on important resources they'll need to operate a delivery business.

That means drivers won't have to use their own cars, as in the crowdsourced delivery program known as Amazon Flex.

Amazon has been constantly fine-tuning its delivery options in an attempt to stay ahead of e-commerce rivals, including Amazon Key in-home, and the recent Key In-Car delivery services that take convenience to a new level. Amazon makes sure packages get to distribution centers in each city, but those other carriers bring the goods between those centers and customers' doorsteps.




Numerous businesses joining Amazon's newest venture will have "little to no logistics experience", which may give 3PLs some breathing room before the competition heats up.

The idea focuses on what Amazon calls "the last mile".

"This is exciting. It's great [and] something that we're building for us, for our community, and having the opportunity to work with a company like Amazon is really something", Roberto Ramon said.

The Delivery Service Partners program gives Amazon more control over the last step of the delivery process.

Others, though, likened Amazon's ambitions to a franchise business model, in which a company such as McDonald's might handle branding and marketing but leave day-to-day operations up to local owners. 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 evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses".

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