Amazon looking to foster small independent delivery fleets

Amazon wants to help you start your own delivery business

Amazon Invites Startups to Help It Deliver

Amazon launched a new program Thursday to help small-business owners start their own company delivering Amazon Packages.

Delivery Service Partners can start their own business with investments from $10,000, it said.

Amazon claims fleet owners with 20 to 40 vans on the road can earn up to $300,000 in annual profit.

The company says that as little as $10,000 in cash is required, no logistic experience is required and it is also committing $1 million toward funding veterans' startup costs.

Amazon's new program, called Delivery Service Partners, offers startups an opportunity to grow a successful package delivery business.

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Amazon is looking for entrepreneurs to help build out its delivery service with tens of thousands of new drivers across the U.S. It is also offering discounts on insurance, fuel, and other expenses, as well as hands-on training.

"This is all about scaling cost effectively", said Dave Clark, senior vice president of Amazon Worldwide Operations. "We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery".

However, Amazon will continue to work existing partners, including UPS and FedEx, in addition to the USPS and smaller last-mile delivery partners, for some time.

Amazon has beefed up its delivery network in other ways: It has a fleet of cargo planes it calls "Prime Air", announced past year that it was building an air cargo hub in Kentucky and pays people as much as $25 an hour to deliver packages with their cars through Amazon Flex.

APAmazon delivery service partners must have access to $30,000 in liquid assets.

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Recently, the company has come under fire from President Donald Trump who tweeted that Amazon should pay the U.S. Postal Service more for shipping its packages.

In other words, Amazon has put together what amounts to a turnkey delivery fleet operation. "I had prior experience running my own business but not in logistics", said Abimbola, who participated in a media event Wednesday in Seattle and whose statements were included in Amazon's announcement of the project. While his background is in computer science and not logistics, he says he's "loving" his new business and has already hired more than 40 employees who work "fairly regular hours" and "are encouraged to take breaks".

Right now, when parcels are delivered late or not at all, or when they are left out in the rain or otherwise damaged, Amazon can blame the delivery companies.

It's unclear if Amazon will cut back on its postal deliveries in favour of its own and how quickly that could happen.

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