Amazon Wants You to Start a Business As a Package Delivery Driver

On Wednesday Amazon unveiled its plan to expand its delivery options. Olaoluwa Abimbola founder of Denver-based En Route Logistics started his own delivery business as part of Amazon’s program

On Wednesday Amazon unveiled its plan to expand its delivery options. Olaoluwa Abimbola founder of Denver-based En Route Logistics started his own delivery business as part of Amazon’s program

The business owners - who don't need logistics experience, Amazon notes - will be offered discounts on the customized delivery vans, branded uniforms, fuel, comprehensive insurance coverage, and more - deals the retailer pre-negotiated on their behalf.

Amazon (NASDAQ:AMZN) is introducing a new delivery system that will challenge UPS (NYSE:UPS) and FedEx (NYSE:FDX). The entrepreneur will be responsible for hiring delivery people, and Amazon would be the customer, paying the business to pick up packages from its 75 delivery centers around the country and delivering them to shopper's doorsteps.

Amazon says that its help will bring a slew of benefits to those looking to start their own delivery businesses.

Amazon is also setting aside $1 million to offer funding startup costs to military veterans, with $10,000 reimbursements for qualified candidates to build their businesses. Amazon envisions empowering hundreds of new small business owners to hire tens of thousands of delivery drivers, joining its existing community of delivery service partners. It claims that these people could make as much as $300,000 in yearly profits and have up to 40 delivery vans under their control. This gives them more space for organizing packages, the ability to use parking spots for delivery vehicles, and the ability to haul extra equipment, like straps and dollies.

Amazon has gotten flack in the past for some of the challenges its crowdsourced "last mile" delivery drivers face, but now it's offering those with entrepreneurial ambitions the option to do more.

Earlier this year, Reuters reported that Walmart had ended grocery delivery partnerships with ride-hailing services Uber and Lyft. In return, Amazon gets more ways to ship its packages to shoppers without having to rely on UPS, FedEx and other package delivery services.

That program will continue.

"Flex is all about leveraging available capacity", said Clark.

"We evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses".

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