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Amazon's plans for its own delivery service are going forward, while the company is looking to reduce its reliance on established delivery services like FedEx (fdx) and UPS (ups ). But Amazon wants others to take a big part of the risk.
Thursday, the e-commerce giant said that he wanted entrepreneurs to set up small delivery companies specifically for the purpose of delivering Amazon packages. Each fleet can have up to 40 vehicles and workers will have to wear Amazon branded uniforms. Amazon will give them technology and training, as well as discounts on insurance and vehicle leases.
In addition, Amazon (amzn) says it would offer a total of $ 1 million to military veterans who want to start these businesses. the person. This is undoubtedly Thursday's announcement of a political and operational movement, at a time when the company is being criticized by President Donald Trump about his alleged exploitation of the service. postal code
. to people with little or no experience in logistics the opportunity to run their own delivery business, "said Amazon in a statement." To help keep start-up costs as low as $ 10,000, Entrepreneurs will also have access to a variety of discounts negotiated exclusively on the significant resources they will need to run a delivery business. "
The statement that Amazon needed more capacity because of the At the same time, he praised Amazon's "major partners of our traditional carriers" – services that obviously can not fully handle Amazon's load.
According to the figures quoted by Wall Street Journal Amazon's shipments to the United States have more than doubled in the last five years, and projected growth exceeds delivery capacity legacy logistics companies.
Amazon already operates a fleet of logistics vehicles – from planes to truck trailers – to obtain products in the United States. The question here is the "last mile" of the logistics process, which sees parcels delivered to customers' doors.
The company already has a program called "Flex" for drivers who want to use their own cars to deliver on-demand packages. But now, people in the United States will probably get used to seeing Amazon branded delivery vehicles on their streets, as they do with UPS and the postal service.
The structure of the Amazon plan means that the company does not need to bear most of the risks associated with setting up its delivery service. The extreme popularity of its platform means that these new small businesses will probably have a guaranteed source of income, but with only one customer. It will be interesting to see how the relationship between Amazon and these small businesses unfolds, as it is likely that Amazon will set all the terms here.
It is also interesting to note that Amazon ultimately wants to deliver packages by drone and by other automated means. . It remains to be seen how long these start-ups will have before competing with robots.
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