Amazon's dependence on services like USPS, UPS and FedEx, which now deliver the bulk of its packages, also has downsides.
Amazon has faced these delivery issues largely due to increase in orders and despite promoting this driver-owned vehicle program, they will have to retain all the existing tie-ups with the US Postal Service and logistics giants UPS and FedEx. Taking more control over that growth, the web retailer offered to help anyone who wants to start their own delivery businesses. "You'll be expected to provide consistent coaching and support for your team to ensure the successful delivery of packages in a 7 days/week, 365 days/year operation".More news: European Union leaders seal deal on migrants after marathon talks
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 auto to drop off packages.
Then there's the political cost: President Donald Trump, in a series of tweets, has attacked Amazon for "costing the United States Post Office massive amounts of money for being their Delivery Boy". Contractors that participate in the programme will be able to lease blue vans with the Amazon logo stamped on it, buy Amazon uniforms for drivers and get support from Amazon to grow their business. The company said it will help keep start-up costs to about $10,000 by offering discounts on vehicles, fuel and insurance coverage. If they are approved to join the program, Amazon says those businesses can continue to deliver packages for other companies.
Amazon set up a website, Logistics.Amazon.com, where entrepreneurs can apply for the program.More news: Preparations for Putin-Trump summit on
UPS said by email that it's "confident in its strategies and believes there is tremendous opportunity" in consumer deliveries, though declined to comment on how Amazon's move might affect its business.
"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 a statement.
It's unclear if Amazon will cut back on its postal deliveries in favour of its own and how quickly that could happen.More news: Joachim Low to consider position after Germany's 'deserved' exit
Amazon is constantly looking for hands-on leaders who think big and deliver results for our customers. 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.