Amazon to pay employees to quit and start their own delivery businesses

Andrew Cummings
May 14, 2019

In June 2018, Amazon announced U.S. employees could apply to start their own small businesses, delivering Prime packages in Amazon-branded vans and uniforms.

The company on Monday said it's now expanding this program, called Delivery Service Partner, to get its own employees to join.

In launching the program, Amazon said the total revenue potential for Delivery Service Partner companies would be $1 million to $4.5 million a year once a company reaches critical mass.

Amazon has been trying to gear up an independent delivery service to handle packages now going to companies such as UPS and FedEx as well as the Postal Service.

The company is expected to need even more control as it accelerates the standard two-day free shipping to one day for Amazon Prime members.

Amazon launched the Delivery Service Partner program in June 2018 and has more than 200 small business started out its creation.

Since the program launched past year, more than 200 new small businesses have launched as a result.

"An employee will leave their role at Amazon to build their business knowing they will have consistent delivery volume from Amazon, access to the company's sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, including Amazon-branded vans customized for delivery, branded uniforms and comprehensive insurance", Amazon said in a news release.

The move is a way for Amazon is to control more of its deliveries, rather than relying on the USA postal service or other carriers such as UPS. This year, the company plans to add hundreds more delivery contractors, including the former employees who take up the company on its offer. "You've got to find 20 to 40 fit and responsible individuals with good driving records to operate your vans, do background checks and process employment paperwork and then manage the mind-boggling job of scheduling not only their time, but the delivery of thousands of packages per month within tight allotted time frames". Amazon prepays up to 95 percent of their tuition for in-demand fields regardless of whether the employee's new career is relevant to Amazon's interests. He started the business in Atlanta, Georgia about eight months ago. It has already been preparing for the one-day shipping switch by hiring more people.

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