Move Over UPS Truck: Amazon Delivery Vans To Hit Streets

Amazon vans may soon be delivering packages to shoppers

Amazon vans may soon be delivering packages to shoppers

Amazon is announcing a new Prime plan for package delivery that gives aspiring entrepreneurs the opportunity to open their very own small delivery business. Successful owners can earn as much as $300 thousand in annual profit operating a fleet of up to 40 delivery vehicles. Entry costs for Delivery Service Partners start at $10,000 - an initialexpense Amazon will reimburse to qualifiedmilitary veterans from a specifically allocated $1 million fund. The company has said in the past that issues at either of these companies would ultimately hurt its own business due to how much it relies on them for deliveries. The company said it will help keep start-up costs to about $10,000 by offering discounts on vehicles, uniforms, fuel and insurance coverage. Dave Clark, Amazon's senior VP for worldwide operations, told The New York Times that it's hoping to get hundreds of sign-ups over the next year. "We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery". These businesses will then be responsible for delivering the company's packages to customers, rather than having another service handle it. Amazon is also testing a number of programs that could replace or reduce its reliance on its delivery partners. He added that Amazon has a great relationship with all their delivery services, including the post office. If the company switches to its own delivery vans, customers will have no one to blame but Amazon.

Businesses will pick up Amazon packages from one of its 75 USA delivery stations before transporting them to buyers.

Amazon has built up a fleet of more than 6,000 trailers and almost three dozen cargo jets to bulk up its long-range delivery network. "I had prior experience running my own business but not in logistics", said Abimbola, who participated in a media event Wednesday in Seattle and whose statements were included in Amazon's announcement of the project. They operate their own businesses and hire their own employees, though Amazon requires them to offer healthcare, paid time off, and competitive wages. Amazon makes sure packages get to distribution centers in each city, but those other carriers bring the goods between those centers and customers' doorsteps. They don't have to lease the Amazon blue vans, but if they do, those vehicles can only be used to deliver Amazon packages, the company said. Amazon would not say if it was requesting a set minimum wage for the drivers.

It's unclear if Amazon will cut back on its postal deliveries in favour of its own and how quickly that could happen.

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