Amazon wants to help entrepreneurs start their own delivery companies

01 July, 2018, 00:53 | Author: Sheri Evans
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				Dave Clark Amazon's senior vice president of worldwide operations and an Amazon delivery van.			Reuters

Kroger, the grocery giant, is also upping its delivery game partnering with the self-driving vehicle company Nuro.

"We have great partners in our traditional carriers and it's exciting to continue to see the logistics industry grow,"saidDave Clark, Amazon's senior vice president of worldwide operations". That's a lot of revenue, but also a lot of deliveries.

This also addresses some of the problems the gig work Flex drivers faced - gas prices would often cut far too much into profits; the lack of insurance; and the general challenges associated with trying to delivery packages from an unbranded, small auto.

So far, that hasn't been enough ensure Prime customers get their packages in time. So far the threat hasn't hurt Amazon stock, but there is the worry that it might.

The online retailer, which a year ago 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.

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The company has revealed a program that will help entrepreneurs start up a package delivery company to. deliver Amazon's packages. Military veterans can apply for $10,000 to reimburse startup costs.

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

Meanwhile, Amazon has for almost three years had its Flex program where drivers can get paid for deliveries using their personal cars.

According to Amazon, the company will take an active rolein helping would-be fleet owners start, set up, and manage their businesses.

More: Amazon is testing its own delivery service.

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This initiative comes after President Donald Trump in recent months has criticized Amazon for getting the U.S. Postal Service to deliver Amazon packages at bargain prices. However, company is making all efforts to resolve the issues related to the transportation or delivery of goods.

Still, FedEx and UPS stocks dipped following the announcement. (NASDAQ:AMZN) is exploring further building out its own logistics network, and we now know one of the steps the e-commerce giant is going to take to make that happen.

Amazon delivery long has relied on the U.S. Postal Service, United Parcel Service (UPS) and FedEx (FDX).

Clark said Amazon has "great relationships" with its external delivery partners. These businesses will then be responsible for delivering the company's packages to customers, rather than having another service handle it. And some Amazon Prime members can have packages dropped inside their homes or vehicle.

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