Amazon recently found another way to get packages even quicker to its customers. Last week the e-commerce giant announced that they have a new entrepreneurial program called the Delivery Service Partners.
With an investment of as little as 10K, a small business owner can operate a fleet of trucks and deliver on behalf of Amazon.
The drivers will wear blue-collared shirts with an Amazon logo and black hats, and the trucks will display the Amazon logo. The package delivery businesses itself will be owned and operated by the entrepreneur and contracted with Amazon.
From an article on CNBC: “This is all about scaling cost effectively,” said Dave Clark, senior vice president of Amazon Worldwide Operations. He said the new delivery program will help meet the growth in e-commerce. “We are going to have to meet this growth, and it’s outpacing the growth of our core providers.”
Business owners are estimated to have annual profits from $75,000 to $300,000. According to the brochure about the program, the actual figures may vary by city and individual business’ costs.
Delivery Service Partners Application.
In its application, Amazon lists the following qualifications to be a part of their Delivery Service Partner program:
- “Experience hiring and developing great teams”
- “Ready to commit to being a hands-on DSP owner full-time”
- “Available liquid assets of at least $30,000”
- “Strong credit history”
- “Previous business ownership preferred, but not required”
Amazon isn’t disclosing any financials regarding the program as of yet, but Clark said that its “much more about customer experience and meeting overall growth. We think this is going to be a cost-effective way to do that.”
UPS & USPS Speak Out.
Amazon’s competitors are speaking out about this new service. Here is what they have to say:
In a statement to CNBC, a UPS spokesperson said: “UPS closely monitors customer and competitor announcements, but we do not speculate on the likelihood of their success, nor potential impact on UPS’s business. UPS is confident in its strategies and believes there is tremendous opportunity in the B2C market and more growth coming, regardless of how other companies may shift their use of UPS services.”
A spokesperson for the U.S. Postal Service said “The Postal Service needs to earn its customers’ business every day by providing great service at a competitive price, and we continue to attract e-commerce customers and business partners because our customers see the value of our predictable service, enhanced visibility, and affordable pricing.”
If you’d like to sign up or learn more about the Delivery Service Partners program, visit here.
Until next time, I’m Attorney Francine Ward helping you protect what’s yours. Join my conversation on Facebook, Twitter, or in one of my LinkedIn groups, Google+ Circles.