wnol.info July 16 2018

Amazon seeking entrepreneurs willing to start their own delivery service networks

July 16 2018, 04:28 | Alonzo Simpson

Amazon wants to help you start your own delivery business

Amazon vans may soon be delivering packages to shoppers

It has a fleet of cargo planes it calls "Prime Air", announced a year ago that it was building an air cargo hub in Kentucky and pays people as much as $25 an hour to deliver packages with their cars through Amazon Flex.

As little as $10,000 is needed to get started and logistics experience was not required, according to its website, where interested individuals can apply for the program.

Amazon's new program, called Delivery Service Partners, offers startups an opportunity to grow a successful package delivery business.

The company's Delivery Service Partners is just another component of the company's logistics network. Yahoo Finance's Seana Smith, Dion Rabouin, Myles Udland and Dan Roberts discuss.

"This is all about scaling cost effectively", said Dave Clark, senior vice president of Amazon Worldwide Operations.

Delivery partners who are accepted into Amazon's program could earn about $300,000 in annual profits operating a fleet of up to 40 delivery vehicles, the company said. The company will funnel $1 million to funding startup costs for military veterans and also offer $10,000 in reimbursement for what it deems to be "qualified candidates".

Amazon is looking for entrepreneurs to help build out its delivery service with tens of thousands of new drivers across the U.S.

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Meanwhile, Amazon has for almost three years had its Flex program where drivers can get paid for deliveries using their personal cars.

"We looked at our history with small business" on the Amazon marketplace platform, Clark said, "and we said we can do the same thing in last mile and people can own a manageable size business".

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.

More: Amazon is testing its own delivery service.

"We evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses".

With its new program rolling out Thursday, contractors around the country can launch businesses that deliver Amazon packages. Each entrepreneur will oversee 40 to 100 employees who will use 20 to 40 Amazon-branded vans to deliver packages year-round, using Amazon's own logistics systems to facilitate the process. USPS said in its annual report a year ago that its revenue growth "is driven entirely by increases in shipping and packages".

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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