Amazon has been doing some major things lately, like extending Prime membership benefits to their Whole Foods locations and launching a new service that allows delivery people access the inside of your vehicle to drop off packages.
Amazon's new "Delivery Service Partners" and their staff members won't be employed by the tech company. To help keep startup costs as low as $10,000, entrepreneurs will also have access to a variety of exclusively negotiated discounts on important resources they'll need to operate a delivery business.
Right now, when parcels are delivered late or not at all, or when they are left out in the rain or otherwise damaged, Amazon can blame the delivery companies.
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The announcement comes after repetitive criticism of Amazon by President Donald Trump over the company using the US Postal Service to deliver its packages. So they've begun looking for alternative solutions. This issue is one of the biggest challenges for retail, as customers are increasingly expecting a faster and cheaper delivery of online sales.
At a press conference in Seattle, Amazon unveiled one of the dark gray trucks with the Prime logo that businesses would hire to deliver parcels to the consumer, even saying how attractive conditions would be for businessmen to join plan.
Drivers will be full-time workers instead of contractors, and Amazon will require business owners to give them paid time off and other benefits.
As part of the new program, each small business could have up to 40 delivery vehicles and 100 employees, Amazon said.
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"Customer demand is higher than ever and we have a need to build more capacity", Dave Clark, Amazon's senior vice president of worldwide operations, said in the statement. Amazon has set aside $1 million for this program.
Amazon said in a release that owners of these delivery businesses have the potential to earn as much as $300,000 in annual profit operating a fleet of up to 40 delivery vehicles. Amazon uses the USPS for an estimated 40% of its last-mile deliveries, paying USPS's standard bulk pricing. "I was driving for Amazon Flex when I learned about the opportunity to start my own delivery company". 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.
Moreover, he doesn't think Amazon's new models are a direct threat to the UPS and FedEx networks.
Heat Advisory Issued For Saturday
There's also a little rain in the forecast, with a chance of showers and thunderstorms late Monday afternoon . The risk of thunderstorms on Monday is low , however there is a slight chance on Tuesday .