Published: Sun, July 01, 2018
Markets | By Terence Owen

Amazon seeks small businesses to deliver packages

Amazon seeks small businesses to deliver packages

Amazon launched a new program Thursday to help small-business owners start their own company delivering Amazon Packages.

The company says delivery partners who are accepted into the program need only a minimum investment of $10,000, and they could earn about $300,000 in annual profits operating a fleet of up to 40 delivery vehicles. Start-up costs for a DSP business are as low as $10,000, and military veterans can apply to have their start-up costs reimbursed.

This Amazon Delivery Service Partner program is in response to the company's high demand for package handlers.

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 USA delivery centers and dropping them off at shoppers' doorsteps. Amazon is also offering pre-negotiated deals on things like Amazon-branded vehicles customized for delivery, branded uniforms, and comprehensive insurance coverage.

"We are going to offer a lot of support to these new businesses", Madan said, "so people who may not have logistics experience or experience building their own small business will have access to Amazon's technology".

Amazon rivals like USA grocery chain Kroger Co and retail giant Walmart are also experimenting with different delivery models. He added that Amazon has a great relationship with all their delivery services, including the post office.

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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.

One man who was part of Amazon's test of the program told reporters that the number of packages Amazon needs to be delivered keeps his business busy. Amazon's growth in the e-commerce sector has been astounding and having greater control of its delivery network is essential to its Prime business, which delivers over 5 billion packages a year globally. The company said its vans could only be used for Amazon deliveries, though partners can deliver for other companies when using different vehicles. This gives them more space for organizing packages, the ability to use parking spots for delivery vehicles, and the ability to haul extra equipment, like straps and dollies.

He hired more than 40 workers in five months, Abimbola said.

Walmart plans to expand same-day grocery delivery to more than 40 per cent of US households, or 100 metro areas by year's end.

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.

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