Want to start an Amazon delivery business? What to know

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If someone wants to join this program, he or she may have to invest around $10,000 and go in for a delivery vehicle which will be offered on lease at a subsidized price, thanks to Amazon's arrangement with the automobile companies.

Amazon announced today the launch of a new offering that helps entrepreneurs build their own companies delivering Amazon packages.

The independent contractor owner-operator model is similar to how FedEx handles its last-mile deliveries, while UPS delivery trucks are staffed by unionized employees, Blackledge writes.

According to Amazon Logistics, "If you're a customer-obsessed people person who loves coaching teams in a high speed, ever-changing environment, becoming an Amazon Delivery Service Partner is an ideal opportunity for you". Over time, Amazon will empower hundreds of new, small business owners to hire tens of thousands of delivery drivers across the USA, joining a robust existing community of traditional carriers, as well as small-and-medium-sized businesses that already employ thousands of drivers delivering Amazon packages. An Amazon representative declined to give details on how much it will pay for the deliveries.


The move comes as President Donald Trump has complained about the postal service undercharging Amazon to deliver packages.

Clark said that the new program will supplement Amazon's existing shipping setups, and that all its usual relationships with partners, including the USPS, will remain intact.

Amazon also said it plans to eventually hire hundreds of business owners, who would employ tens of thousands of drivers across the U.S. However, an Amazon SVP told CNBC that this new program shouldn't damage the company's relationship with core providers. The creation of Marketplace, which uses Amazon's websites and logistics operations to connect customers with third-party sellers, has enabled more than 140,000 small-and-medium-sized businesses to do more than $100,000 in sales. The contractor will be responsible for hiring delivery people, and Amazon would be the customer, paying the business to pick up packages from its 75 USA delivery centers and dropping them off at shoppers' doorsteps. With the new startup initiative, the online store will be able to boost its shipment capacity while putting Amazon-branded vehicles and uniforms on the streets.

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