Amazon Wants To Help Entrepreneurs In Charlotte Build Their Own Delivery Fleet

02 July, 2018, 11:56 | Author: Brooke Harris
  • Source FedEx

Amazon did not provide details about the incentives, nor did it explain whether it would pay for business per trip, per mile or per month. Startup costs can be as low as $10,000, Amazon said, with an entrepreneur running 40 trucks making $300,000 a year.

Amazon says opportunities are available near its 75 delivery stations across the country. A year ago it introduced Amazon Flex, which allows independent drivers to pick up shifts delivering packages around town.

Amazon is starting its own delivery service in an effort to reduce its reliance of UPS, FedEx an the post office.

UPS, for example, uses about 117,000 trucks and 500 planes and employs 2,700 pilots to deliver 20 million packages a day on average worldwide.

Amazon is trying to tackle some of the issues it has been facing with the last mile delivery of packages to its customers by working out a new plan to allow interested individuals to start their own delivery operations, with a lot of the required support coming from Amazon.

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The online retailer launched a new program this week that helps people in the United States start their own businesses delivering Amazon packages. Contractors that participate in the programme will be able to lease blue vans with the Amazon logo stamped on it, buy Amazon uniforms for drivers and get support from Amazon to grow their business. You'll be fully responsible for hiring and developing a team of high-performing, hardworking drivers, while we take care of getting you set up and ready to operate out of an Amazon delivery station in your city. The company said it will help keep start-up costs to about $10,000 by offering discounts on vehicles, fuel and insurance coverage.

By using independent contractors instead of Amazon employees to deliver goods, the company can avoid paying benefits such as overtime, workers' compensation and unemployment insurance, according to Benjamin Sach, a professor of labor and industry at Harvard Law School. People have to apply at logistics.amazon.com and be approved by Amazon.

Others, though, likened Amazon's ambitions to a franchise business model, in which a company like McDonald's might handle branding and marketing, but leave day-to-day operations up to local owners.

Moreover, he doesn't think Amazon's new models are a direct threat to the UPS and FedEx networks. 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.

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