Dave Clark, Amazon's senior vice president of worldwide operations, said the new program is not a response to the president, but a way to make sure the company can deliver its growing number of orders.
If someone wants to join this program, he or she may have to invest around $10,000 and go in for a delivery vehicle which will be offered on lease at a subsidized price, thanks to Amazon's arrangement with the automobile companies.
Amazon's Delivery Service Partners already has 7,000 of its own trucks and 40 airplanes which, along with external delivery partners, shipped more than 5 billion Prime items a year ago. Amazon will take an active role in helping interested entrepreneurs start, set up and manage their own delivery business.
Amazon's new "Delivery Service Partners" and their staff members won't be employed by the tech company.
"Customer demand is higher than ever and we have a need to build more capacity".
Amazon is also offering qualifying military veterans $10,000 in reimbursements to get their own delivery business started. According to an eMarketer forecast, over 40 percent of all e-commerce purchases this year will be made on Amazon.
Probably not. There are more packages to be delivered besides the ones shipped by Amazon.
Owners of these businesses will have delivery volume from Amazon and access to the company's delivery technology as well as discounts on assets and services, including vehicle leases and comprehensive insurance. Backed by Amazon's resources and logistics experience, and its encouragement to 'learn while I earn, ' this opportunity was a no-brainer.
The independent contractor owner-operator model is similar to how FedEx handles its last-mile deliveries, while UPS delivery trucks are staffed by unionized employees, Blackledge writes. 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 US delivery centers and dropping them off at shoppers' doorsteps.
Amazon's new program could rake $75,000 and $300,000 in annual profits for each entrepreneur. This new Amazon offering continues the company's longtime commitment to enabling small-and-medium-sized businesses to grow with the rising tide of e-commerce.