Amazon wants to deliver its own packages

Amazon vans may soon be delivering packages to shoppers

Amazon's new Delivery Service Partners program is created to let entrepreneurs run their own delivery network of up to 40 blue vans with the Amazon Prime logo, according to the Associated Press.

"We're really excited about introducing this new program that helps aspiring entrepreneurs build their own business delivering for Amazon", Amazon's director of Worldwide Last Mile Udit Madan said in an interview with WDRB News.

With startup costs as low as $10,000, owners can operate a fleet of up to 40 delivery vehicles and could make $300,000 in annual profit, according to the statement.

The new program promises more competition for delivery companies like United Parcel Service and FedEx Corp.

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People interested in applying for the program don't need to have any experience in delivery and logistics, the company said.

Inc. (AMZN) is enlisting entrepreneurs to help deliver its packages to the homes of millions of US customers. This includes offering discounts on "Amazon-branded vehicles customized for delivery, branded uniforms, fuel, comprehensive insurance coverage, and more".

Drivers will be full-time workers instead of contractors, and Amazon will require business owners to give them paid time off and other benefits.

This new last-mile delivery program is in addition to Amazon Flex, a delivery program in more than 50 USA cities that operates more like Uber or Lyft, with "gig workers" delivering parcels from their own vehicles for $18 to $25 an hour.

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The Amazon driver shows off her new uniform at the company's press event in Seattle to announce its new delivery program.

Former Flex driver Olaoluwa Abimbola, who participated in Amazon's testing of the new small delivery business initiative, has grown his own delivery company with more than 40 employees in five months.

Added to the challenges is a President who has been threatening to take action on Amazon's use of the U.S. Postal Service for deliveries. "They pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!" he tweeted.

In other words, Amazon has put together what amounts to a turnkey delivery fleet operation.

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Amazon's ever-expanding retail empire is going to need more workers and vehicles to get millions of packages to shoppers' doors. But as it's helping entrepreneurs, Amazon is also helping itself gain greater control over its own logistics network. USPS said in its annual report past year that its revenue growth "is driven entirely by increases in shipping and packages".

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