Amazon Wants to Help You Start Your Own Delivery Service


People interested in applying for the program don't need to have any experience in delivery and logistics, the company said.

Amazon outlined the program in a press release on Thursday.

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".

The new incentives appear to be part of an effort by Amazon to rapidly expand that network, as its last-mile-delivery needs have ballooned in recent years.

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Each potential partner will first be vetted by the company. "If you're accepted into the Amazon program, you have your customer on day one with no customer acquisition cost and you're going to have all the business you could possibly want", said Cossler. That means that even if you have to build up (and pay for) your own delivery fleet, Amazon assures deals on Amazon-branded vehicles, uniforms, gas, insurance plans, and other things you'll need to run your own service. According to the New York Times, the company says an entrepreneur could earn as much as $300,000 a year in profit by operating a fleet of up to 40 vehicles. They'll be plugged into Amazon's software, which will determine where the drivers go. "This is really about meeting growth for our future", he said.

Dave Clark, Amazon's senior vice president of worldwide operations, said the new program isn't a response to the president, but a way to make sure the company can deliver its growing number of orders.

In other words, Amazon just launched its own UPS competitor of sorts, by offering leased vans, training and resources to those who want to drive for Amazon instead of Uber.

Amazon has also been planning another initiative in which it would send Amazon trucks to third-party sellers' warehouses and take pallets of goods to Amazon fulfillment centers.

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

"This is a huge market segment, [with] the size of the transportation space and the growth in the parcel industry".

Over the next several years, Amazon hopes to help create hundreds of small businesses nationwide, ultimately creating thousands of jobs.

"This program signals that Amazon would like to ramp up its last-mile logistics operation more quickly", said Colin Sebastian, an analyst at Baird. Despite their affiliation and branding, these entrepreneurs and drivers will not actually work for Amazon, according to CNN.

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UPS and FedEx leaders have long scoffed at the idea that Amazon could turn from a customer to a competitor, and most analysts have agreed - and still do so.