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

Jul 02, 2018, 00:17
Move over UPS truck: Amazon delivery vans to hit the street

It's their latest attempt to gain even more control over their delivery network, which now ships over 5 billion packages around the world annually. Individuals can also sign up for a programme called Amazon Flex to deliver merchandise using their own vehicles, earning $18 to $25 an hour.

"We have great partners in our traditional carriers and it's exciting to continue to see the logistics industry grow", said Dave Clark, Amazon's senior vice president of worldwide operations.

Amazon is offering incentives for entrepreneurs to start their own small scale-delivery service.

Amazon's Delivery Service Partners already has 7,000 of its own trucks and 40 airplanes which, along with external delivery partners, shipped more than 5 billion Prime items a year ago.

According to Amazon Logistics, "If you're a customer-obsessed people person who loves coaching teams in a high speed, ever-changing environment, becoming an Amazon Delivery Service Partner is an ideal opportunity for you".

The start-up cost $10 thousand, but it's free to businesses founded by U.S. military veterans.

The announcement follows public criticism of Amazon by President Donald Trump over the company's arrangement with the US Postal Service. "This is really about meeting growth for our future", Clark said.

"We don't have to go make sales speeches", Abimbola said.

Olaoluwa Abimbola, who was part of Amazon's test of the programme, said that the amount of packages Amazon needs delivered keeps his business busy.

Those interested first need to apply at its website, logitstics.amazon.com.

Cowen analyst John Blackledge, who rates Amazon at Outperform with a $2,000 price target, predicts in a report issued today that 34% of the company's packages will not be delivered by the USPS, UPS, or FedEx in five years, compared with 17% today. An Amazon representative declined to give details on how much it will pay for the deliveries. 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. With the new startup initiative, the online store will be able to boost its shipment capacity while putting Amazon-branded vehicles and uniforms on the streets.

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