Amazon has launched a new offering that helps entrepreneurs build their own companies delivering Amazon packages, a move that some reports suggest will take on the likes of FedEx and UPS.
Entrepreneurs can earn as much as $300,000 in annual profit operating a fleet of up to 40 delivery vehicles.
Individual owners can build their business knowing they will have delivery volume from Amazon, access to the company’s delivery technology, hands-on training, and discounts on a suite of assets and services, including vehicle leases and comprehensive insurance.
"Over time, Amazon will empower hundreds of new, small business owners to hire tens of thousands of delivery drivers across the US, joining a robust existing community of traditional carriers, as well as small-and-medium-sized businesses that already employ thousands of drivers delivering Amazon package," a press release from the e-commerce giant said.
To help keep startup costs as low as $10,000, entrepreneurs will also have access to a variety of exclusively negotiated discounts on important resources they’ll need to operate a delivery business.
The deals are available on Amazon-branded vehicles customised for delivery, branded uniforms, fuel, comprehensive insurance coverage, and more.
“We have great partners in our traditional carriers and it’s exciting to continue to see the logistics industry grow,” said Dave Clark, Amazon’s senior vice president of worldwide operations.
“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.
"We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery.”
“I had prior experience running my own business but not in logistics,” said Olaoluwa Abimbola, one of Amazon’s beta participants in the new offering.
“I was driving for Amazon Flex when I learned about the opportunity to start my own delivery company. Backed by Amazon’s resources and logistics experience, and its encouragement to ‘learn while I earn,’ this opportunity was a no-brainer.
"In just five months, I have hired more than 40 employees, and it’s encouraging to know that any driven individual can use Amazon’s support and the Delivery Service Partner community to build a successful, thriving business.”
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