Amazon unveils plan for entrepreneurs to take over from UPS

Amazon unveils plan for entrepreneurs to take over from UPS

Amazon unveils plan for entrepreneurs to take over from UPS

Amazon launched a new service that will help entrepreneurs build their own companies delivering Amazon packages.

Amazon is looking to keep up with skyrocketing demand for delivery by launching an initiative that encourages people to start their own small package delivery businesses for the company.

Amazon estimates it will cost $10,000 to start a business operating 40 vehicles, with an earning potential of up to $300,000 in profit each year.

Amazon also notes that this offer will have startup costs as low as $10,000. The move gives Amazon more ways to ship its packages to shoppers without having to rely on UPS, FedEx and other package delivery services.

Starting Thursday, you can apply to start your very own small business, delivering Amazon Prime packages in Amazon branded vans and uniforms.

Inc. (AMZN) is enlisting entrepreneurs to help deliver its packages to the homes of millions of USA customers. Amazon is also offering pre-negotiated deals on things like Amazon-branded vehicles customized for delivery, branded uniforms, and comprehensive insurance coverage.


Dave Clark, company's SVP of worldwide operations, said that he is expecting to see fleet operators with 20 to 40 vehicles with 100 drivers. "As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses".

Amazon rivals like U.S. grocery chain Kroger Co and retail giant Walmart are also experimenting with different delivery models.

Added to the challenges is a President who has been threatening to take action on Amazon's use of the U.S. Postal Service for deliveries.

Taking advantage of the opportunity was a "no-brainer" for Aurora, Colorado, business owner Ola Abimbola, he said, as one of Amazon's beta participants in the new program.

The company's Delivery Service Partners is just another component of the company's logistics network.

This also addresses some of the problems the gig work Flex drivers faced - gas prices would often cut far too much into profits; the lack of insurance; and the general challenges associated with trying to delivery packages from an unbranded, small auto. "This is really about meeting growth for our future", he said. In 2013, customers who expected to receive Amazon packages in time for Christmas found themselves disappointed when both UPS and FedEx missed delivery deadlines. They haul goods between shipping centers and bear Amazon logos, but don't show up at customers' doorsteps. If the company switches to its own delivery vans, customers will have no one to blame but Amazon.

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