Move over UPS truck: Amazon delivery vans to hit the street

Move over UPS truck: Amazon delivery vans to hit the street

The e-commerce giant has announced a Delivery Service Partners program that allows local entrepreneurs to run their own local delivery fleets, with up to 40 vans displaying Amazon Prime logos.

Amazon said interested partners could start a business with "as little as $10,000"-not including the cost of hiring drivers-and no logistics experience is required".

Amazon said it was also committing $1 million toward funding startup costs for military veterans, offering $10,000 reimbursements for qualified candidates to build their businesses.

As part of the new program, each small business could have up to 40 delivery vehicles and 100 employees, Amazon said. Firms will also receive other support from Amazon, including discounts on uniforms, fuel, insurance, and more. Dave Clark, senior vice president of worldwide operations for Amazon.com, talks to reporters, Wednesday, June 27, 2018, in Seattle, at a media event.

The delivery wars are heating up, and this time Amazon is recruiting small businesses to assist in battle.

Amazon rivals like United States grocery chain Kroger Co and retail giant Walmart are also experimenting with different delivery models.

But labor professors say the arrangement allows Amazon to reap the benefits of a vast delivery network without having to shoulder numerous risks and liabilities involved.

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The announcement comes after FedEx warned Amazon against trying to launch a delivery service. The last mile delivery is among the biggest challenges in the retail industry.

In response, Amazon is rolling out what amounts to a turnkey delivery fleet opportunity for entrepreneurs: Amazon Delivery Service Partners.

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.

Amazon is seeking new delivery partners for Prime delivery jobs. Amazon's growth in the e-commerce sector has been astounding and having greater control of its delivery network is essential to its Prime business, which delivers over 5 billion packages a year globally. "This is really about meeting growth for our future", he said.

Amazon has been slowly building out its own delivery system over the past few years as a way to better control its logistics chain.

Olaoluwa Abimbola, one of the service's beta participants, said he used Amazon's resources to form his own company and has hired 40 employees in five months.

Amazon has also been planning another initiative in which it would send Amazon trucks to third-party sellers' warehouses and take pallets of goods to Amazon fulfillment centers.

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