Amazon is helping entrepreneurs start delivery companies for its packages

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

The move gives Amazon another way to ship its packages to shoppers besides relying on UPS, FedEx and other package delivery services.

The online retailer, which previous year shipped more than 5 billion packages through its Prime program, on Thursday said it is looking for hundreds of entrepreneurs "with little to no logistics experience" to set up their own delivery businesses - complete with Amazon-branded vehicles and uniforms.

The start-up cost $10 thousand, but it's free to businesses founded by United States military veterans.

But labor professors say the arrangement allows Amazon to reap the benefits of a vast delivery network without having to shoulder numerous risks and liabilities involved.

At a press conference in Seattle, Amazon unveiled one of the dark gray trucks with the Prime logo that businesses would hire to deliver parcels to the consumer, even saying how attractive conditions would be for businessmen to join plan. Amazon will take an active role in helping interested entrepreneurs start, set up and manage their own delivery business. And Amazon says it will continue to use other delivery companies, and that this program is just another way to meet the growing amount of packages it needs to ship.

Contractors don't have to lease the vans, but if they do, those vehicles can only be used to deliver Amazon packages, the company said.

To apply, head to the Amazon Logistics website. "I was driving for Amazon Flex when I learned about the opportunity to start my own delivery company".

Clark said that the new program will supplement Amazon's existing shipping setups, and that all its usual relationships with partners, including the USPS, will remain intact.

The new business would be responsible for hiring staff, and Amazon would be the customer, paying for the deliveries.

"This is a huge market segment, [with] the size of the transportation space and the growth in the parcel industry".

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

While they're probably safe in the short term, other delivery companies could be affected in the longer term as Amazon builds out its own comprehensive logistics operation, according to Sebastian.

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.

At the same time, it's able to avoid the less desirable parts of owning and running its own delivery fleets, like the burden of acquiring and operating vehicles and managing employees.



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