Economy

Amazon offers to help employees start delivery business

Amazon offers to help employees start delivery business”

Amazon announced Monday it will offer employees an incentive if they leave their current job with the company in order to start a business that delivers packages for Amazon.

Under a previously announced feature of the DSP program, Amazon pledged $1 million to reimburse up to $10,000 in startup costs for qualified US military veterans.

The new employee incentive is part of a program Amazon started a year ago that let anyone apply to launch an independent Amazon delivery business and provided $10,000 in reimbursements to military veterans.

That's where the new financial incentives for employees come into play. The only caveat is that the startups can only deliver Amazon and Whole Foods products.

Qualified employees would become part of the company's "Delivery Service Partner" program. Amazon said it plans to add "hundreds more" new businesses in 2019, and has expanded the partnership offering to the United Kingdom and Spain.

The move is a way for Amazon is to control more of its deliveries, rather than relying on the US postal service or other carriers such as UPS. It includes hands-on training, on-demand support, Amazon's existing delivery technology, access to leased Amazon Prime-branded delivery vans, and discounts on fuel costs, insurance cover, and branded uniforms for delivery personnel to wear.

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CBS MoneyWatch contributor Kathy Kristof cautioned previous year that would-be delivery moguls "may want to think twice before you accept it". "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 created the Delivery Service Partner program past year, and it has reportedly resulted in the creation of more than 200 small businesses since its inception. "It would be interesting to see what your pay would work out to on an hourly basis".

President Donald Trump has accused the company of taking advantage of the US Postal Service by using bulk rates for packages, although many analysts argue that the struggling public corporation benefits from the revenue from the e-commerce giant.

The AP spoke to Milton Collier, who opened one such business in Atlanta, GA, eight months ago.

Collier says his business is already preparing for the one-day shipping goal by looking for more workers.



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