Amazon launches a last-mile delivery program powered by entrepreneurs

Adjust Comment Print

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

Amazon is getting into the package delivery business, with Youngstown one of many markets the company is targeting.

In response, Amazon is rolling out what amounts to a turnkey delivery fleet opportunity for entrepreneurs: Amazon Delivery Service Partners. Yahoo Finance's Seana Smith, Dion Rabouin, Myles Udland and Dan Roberts discuss. Dave Clark, Amazon's senior VP for worldwide operations, told The New York Times that it's hoping to get hundreds of sign-ups over the next year.

Amazon says that entrepreneurs who start a delivery company under their program have the potential to earn $75,000-$300,000 in annual profit operating 20 to 40 delivery vehicles. The idea is that someone can work with Amazon to start their own independent delivery service, with access to Amazon's delivery infrastructure and guaranteed work, given the high volume of deliveries Amazon makes every day. The online retailer is committing $1 million towards funding startup costs for military veterans.

Making the situation worse for Amazon, President Trump has been pushing the U.S. Postal Service to double the rates it charges Amazon for delivery of packages.

Meanwhile, Amazon has for almost three years had its Flex program where drivers can get paid for deliveries using their personal cars. As for President Donald Trump's public criticism of Amazon's use of the U.S. Postal Service, Clark said: "This doesn't play into that debate at all".

Chicago Pride Parade on North Side celebrates equality
Lady Gaga's "Born This Way" blared from loudspeakers as people marched, danced, stomped and watched along the route. Victoria Justice made a colorful statement as she sat on amfAR and Amazon's float at the NYC Pride parade today.

Amazon's dependence on services such as USPS, UPS and FedEx, which deliver the bulk of its packages, also has downsides.

"This new service for Amazon is not going to be "instead of" the service it already has with the FedExes of the world". "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's growth in the e-commerce sector has been astounding and having greater control of its delivery network is essential to its Prime business, which delivers over 5 billion packages a year globally.

There will also be deals for owners on Amazon-branded vehicles, branded uniforms, fuel and comprehensive insurance coverage. USPS said in its annual report past year that its revenue growth "is driven entirely by increases in shipping and packages".

Olaoluwa Abimbola has been running his delivery service business in the Denver area as part of the beta test for the last five months.

It could also improve Amazon's relationship with customers.