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Briefing
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- Delivery Service Partners – E-commerce giant Amazon launched new Delivery Service Partners program that lets entrepreneurs own business of delivering Amazon packages to customers
- Fleet Ownership and Employment – Each partner gets to manage their own delivery fleet of up to 40 vehicles and employ up to 100 people
- Agreement Terms – Amazon provides discounts on vehicles, uniforms, fuel, insurance, and more, and requires employees to have healthcare, paid time off, and competitive wages
- Business Costs and Profits – Startup costs can be as low as $10,000, while earning up to $300,000 every year in profit
- Replacement of Traditional Partners – Company could be replacing traditional delivery partners, including UPS, FedEx, and U.S. Postal Service
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Accelerator
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Market Disruption
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Business Model and Practices
Business Model
and Practices
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Sector
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Transportation and Logistics, Wholesale and Retail Trade
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Organization
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Amazon.com Inc.
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Source
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Soper, T., "Amazon’s new delivery program sparks early interest as shares of UPS and FedEx dip",
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Lekach, S., "Forget FedEx, Amazon wants to use small businesses for delivery",
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Soper, T., "Amazon’s new blue crew: Tech giant enlists entrepreneurs to own the ‘last mile,’ delivering packages in Prime vans and uniforms",
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AcceleratingBiz analysis
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Original Publication Date
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June 28, 2018
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