FedEx, DHL, U.S. Postal Service and UPS have some new competition for last-mile delivery service. Amazon announced last Thursday that they are launching a new Delivery Service Partners program. Designed to let entrepreneur run their own fleet of Amazon vans with the Prime logo. Each delivery van will start at one of the 75 current Amazon stations throughout the United States.
With as little as $10,000 investment, the partner is given leased Prime-branded vehicles. If they’re successful, Amazon says each owner will have the prospect of earning between $75,000 and $300,000 in annual profits. Amazon will provide training as well as access to its delivery technology, along with discounts on vehicle leases, insurance, Amazon-branded uniforms, fuel and more.
Recently, the company has come under fire from President Donald Trump who tweeted that Amazon should pay the U.S. Postal Service more for shipping its packages. Dave Clark, Amazon's senior vice president of worldwide operations, said the new program is not a response to Trump, but a way to make sure that the company can deliver its growing number of orders. "This is really about meeting growth for our future," Clark said.
As more and more consumers want faster delivery service, this “last-mile conundrum” is a major factor in reshaping the industry. Amazon’s new program is a solution to concerns over their third-party couriers such as FedEx, UPS, and DHL. The company stated that replacing these larger companies was not its plan but providing more service for the growing demand of package deliveries.