Amazon building network of delivery contractors

Amazon building network of delivery contractors

UPS said by email that it's "confident in its strategies and believes there is tremendous opportunity" in consumer deliveries, though declined to comment on how Amazon's move might affect its business.

There is a start-up cost of $10,000, however.

It's their latest attempt to gain even more control over their delivery network, which now ships over 5 billion packages around the world annually.

Probably not. There are more packages to be delivered besides the ones shipped by Amazon.

If you have $10,000 and want to be your own boss, you can apply to start your own small business, delivering Amazon Prime packages in Amazon (AMZN) branded vans and uniforms. Amazon says successful owners can earn up to $300K per year in profit by operating a fleet of up to 40 delivery vehicles.

Amazon has been doing some major things lately, like extending Prime membership benefits to their Whole Foods locations and launching a new service that allows delivery people access the inside of your auto to drop off packages. (He thinks the biggest threat is to growth at the U.S. Postal Service, as that's more likely to be hit by Amazon insourcing.) Vernon also thinks that while the new service could pull from UPS and FedEx "that would be dumb as the marginal rate structure on offer by the bigger companies is likely to be lower than the all-in cost of delivering through a DSP (which is also not particularly smart)". Amazon says those businesses created under the program would operate 20 to 40 vans and employ between 40 and 100 people.

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Amazon set up a website, Logistics.Amazon.com, where entrepreneurs can apply for the program.

Drivers will be full-time workers instead of contractors, and Amazon will require business owners to give them paid time off and other benefits.

Olaoluwa Abimbola, who was part of Amazon's test of the program, said that the amount of packages Amazon needs delivered keeps his business busy. If the company switches to its own delivery vans, customers will have no one to blame but Amazon.

"Customer demand is higher than ever and we have a need to build more capacity", Dave Clark, Amazon's senior vice president of worldwide operations, said in the statement.

The spokesman said: These trucks can only be used for Amazon's traditions. "I was driving for Amazon Flex when I learned about the opportunity to start my own delivery company".

Amazon is constantly looking for hands-on leaders who think big and deliver results for our customers. With today's announcement, Amazon will help entrepreneurs in a new way, by empowering them to build their own delivery businesses.

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