Amazon eyeing small businesses to deliver packages

This issue is one of the biggest challenges for retail, as customers are increasingly expecting a faster and cheaper delivery of online sales.

The new scheme could come in handy for those who felt uncomfortable on many counts with the existing Amazon Flex program where some of the Uber drivers were recruited to make the last mile deliveries and it posed many bottlenecks for them. Individual owners can build their business knowing they will have delivery volume from Amazon, access to the company's sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, including vehicle leases and comprehensive insurance. But Amazon says people in their Delivery Partners program could make profits of $300,000 each year. Amazon has been steadily encroaching on all parts of the traditional delivery firms' turf in recent years, with initiatives including a delivery service for small businesses, building its own air cargo hub, and even expanding into ocean freight shipping.

On Thursday, June 28, 2018, the world's leading e-commerce giant announced plans for entrepreneurs to launch their own delivery businesses for Amazon.

The announcement comes after repetitive criticism of Amazon by President Donald Trump over the company using the US Postal Service to deliver its packages.

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Amazon is also offering qualifying military veterans $10,000 in reimbursements to get their own delivery business started.

Clark said he expects the companies to join the program with 20 to 40 trucks will employ about 100 drivers. Contractors that participate in the program will be able to lease blue vans with the Amazon logo stamped on it, buy Amazon uniforms for drivers and get support from Amazon to grow their business. The contractor will be responsible for hiring delivery people, and Amazon would be the customer, paying the business to pick up packages from its 75 U.S. delivery centres and dropping them off at shoppers' doorsteps. As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses.

UPS said by email that it's "confident in its strategies and believes there is tremendous opportunity" in consumer deliveries, though declined to comment on how Amazon's move might affect its business.

Using workers who are closely connected to Amazon and can represent it but who are not actual Amazon employees hits a sweet spot for the company.

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