Starting today, Amazon is landing up in a new delivery business for Amazon packages. It announced a vacancy for hundreds of the US individuals who want to join the new wing of Amazon Delivery Service Partners, as entrepreneurs delivering packages for Amazon and covering the last mile of the supply chain.
Ahead of Prime Day arriving, the company is beefing up its delivery business in light of rising growth rate of online shopping and meeting customer demands of faster package deliveries.
Without explicitly declaring, with this new business offering Amazon aims to increase its control over its delivery network. At the same time, it is also focusing to reduce dependence upon traditional delivery carriers including UPS, FedEx, and others. So, fundamentally there is a new player in the US logistics business.
“Customer demand is higher than ever and we have a need to build more capacity. As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses,” said Dave Clark, Amazon’s Senior Vice President of worldwide operations yesterday during the press release.
Benefits to Amazon’s New Delivery Service Partners
With an investment cost as low as $10,000, individuals across the US can join Amazon team to start their own business of delivering Amazon packages only. The entrepreneurs will be responsible for recruiting drivers who will work as full-time employees and deliver Amazon packages on the given addresses. Though the e-commerce giant will actively take initiatives to support the entrepreneurs commence, set up and manage their companies.
The new owners of Amazon delivery vans will have access to the company’s sophisticated delivery technology and hands-on training. As per the agreement, they could also extract additional discounts on Amazon’s several exclusive and important resources required to operate the business. This includes entities like Amazon-branded blue colored vehicles, uniform with Amazon logo for drivers, fuel, vehicle lease, comprehensive insurance, and more.
The giant online retailer has also reserved $1 million in funding for military veterans wanting to associate with Amazon Delivery Service Partners. In such cases, the company will reimburse $10,000 for the eligible applicants who want to build their own businesses.
Later on, Amazon will modify its delivery partnership dynamics to absorb the deep potential of package delivery services. Clark added, “Over time, Amazon will empower hundreds of new, small business owners to hire tens of thousands of delivery drivers across the U.S., joining a robust existing community of traditional carriers, as well as small-and-medium-sized businesses that already employ thousands of drivers delivering Amazon packages.”
Success Ratio of Amazon Delivery Business
With a surge in online orders, the new entrepreneurs can expect a constant workflow from the Day One of their business launches. The new company owners delivering Amazon packages will have the opportunity of earning as much as $300,000 in annual profit operating with a fleet of up to 40 delivery vehicles.
Adding to this new offering, Amazon also operates Amazon Flex and Prime Air delivery services. Prime Air is a convoy of 40 airplanes to transport Amazon Packages between shipping centers encompassing the middle-mile of delivery. Subsequently, there are individuals enrolled under Amazon Flex program who use their personal car to deliver the packages at the doorsteps of the customers.
