Amazon has launched Delivery Service Partners, a new programme that allows entrepreneurs to start their own package delivery business under the Amazon brand.
This is the latest of Amazon's initiatives to ensure fast and efficient delivery for its customers.
Representing the Amazon brand
Each Delivery Service Partner is vetted by Amazon, and is expected to represent the Amazon brand.
Partners will lease Prime-branded vehicles from Amazon, delivery units will collect parcels from Amazon stations, and drivers will be expected to wear an Amazon uniform.
The entrepreneurs will, however, be in charge of recruiting and hiring drivers.
Amazon will also offer discounts for costs incurred to run the business.
Scaling cost effectively
This new service brings more delivery costs and customer service under Amazon's control, as it does not need to rely on external partners.
Dave Clark, senior vice president of Amazon Worldwide Operations, said "This is all about scaling cost effectively. We are going to have to meet this [e-commerce] growth, and it's outpacing the growth of our core providers. We use everything in order to meet our scale and meet our needs".
Furthermore, the programme will enable many small businesses to get started. Each Delivery Service Partner can start a business with as little as a $10,000 investment.
This would be particularly attractive to experienced delivery drivers, such as those working for established package delivery companies. This has the potential to disrupt their businesses, and in turn, their clients.
Ensuring fast delivery
Delivery Service Partners is the latest strategy from Amazon to ensure fast delivery for its customers. The programme sits alongside Amazon Flex, an initiative that enables non-professional delivery drivers to make deliveries on behalf of Amazon.
Initiatives like these will help Amazon overcome the financial challenges of delivering the ‘last mile’ to shoppers chosen destinations, whilst offering a solution to meet growing shopper demand.