Amazon Creates Its Own Delivery Service

- Jul 05, 2018-

Amazon has created a new package delivery service that will help entrepreneurs build their own companies delivering Amazon packages.

Amazon said it will enable interested entrepreneurs to start, set up and manage their own delivery business, giving them access to its delivery technology, hands-on training, and discounts on various assets and services, including vehicle leases and comprehensive insurance.

The offering provides technology and operational support to individuals with little to no logistics experience the opportunity to run their own delivery business, Amazon said. It said startup costs could be “as low as $10,000,” if entrepreneurs take advantage of exclusively negotiated discounts on things like Amazon-branded vehicles customized for delivery, branded uniforms, fuel, comprehensive insurance coverage, and more.

The company is committing $1 million towards funding startup costs for military veterans, offering $10,000 reimbursements for qualified candidates to build their own businesses.

“We have great partners in our traditional carriers and it’s exciting to continue to see the logistics industry grow,” said Dave Clark, Amazon’s senior vice president of worldwide operations. “Customer demand is higher than ever and we have a need to build more capacity. As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses. We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery.”

In other Amazon news, the company has agreed to acquire PillPack, a pharmacy that services people who take multiple daily prescriptions, for an undisclosed sum. PillPack delivers medications in pre-sorted dose packaging, coordinates refills and renewals, and makes sure shipments are sent on time.

Completion of this transaction is subject to regulatory approvals and other closing conditions. The transaction is expected to close during the second half of 2018.