Amazon Offers Employees a Startup Delivery Business of Their Own

Remember that adage that states, “If it seems too good to be true, it probably is.”

Well this opportunity by Amazon might be too good to pass up!

In fact, if you’re an employee of the online shopping and shipping company, and ever thought of becoming your own boss, this might be your opportunity.

Amazon has announced that it’s looking for ambitious, aspiring and determined workers to quit their jobs at Amazon and start their own delivery service business.

The new incentive program announced on Monday by Amazon offers those risk-taking employees a guaranteed 3-month salary cushion to ease the transition from wage earner to independent contractor — including up to $10,000 in start-up funds, in getting the delivery business off the ground.

The incentive program actually began last June encouraging those risk takers willing to work hard and build a delivery service, into the competitive business world of last-mile package delivery.

Former Amazon employees would be considered “independent contractors” managing their own delivery service, handling Amazon packages within the United States. Aside from the company’s $10,000 investment, the company will also provide access to Amazon-branded vehicles, uniforms and more.

However, former employees are responsible as independent contractors for filing taxes and running a business similar to any small business owner.

According to Amazon’s calculations, an independent contractor could earn up to $300,000 a year in profit with a fleet of about 40 trucks.

The innovative program may be the solution to a growing problem facing Amazon in how to get packages from its various package-sorting centers to an individual’s doorstep quickly.

The issue of whether independent delivery start-up services like the one Amazon is investing in can challenge, let alone replace some of the work currently being “jobbed out” to United Parcel Services and the United States Postal Service, has yet to be tested.

However, Amazon’s ultimate goal is to retain as much control over their internal delivery service as humanly possible, rather than relying on other outside carriers like UPS or the U.S. postal service

Since last year when the program was first announced and then launched over 200 start-up delivery businesses are now up and running. However the only conditions or limitation required by Amazon is that the new start-ups can only deliver Amazon and Whole Foods products.

Dave Clark, senior vice president of worldwide operations at Amazon said, “We received overwhelming interest from tens of thousands of individuals who applied to be part of the Delivery Service Partner program, including many employees.”

Adding, “We’ve heard from associates that they want to participate in the program but struggled with the transition. Now we have a path for those associated with an appetite for opportunities to own their own businesses.”

The unique program will hopefully make good on Amazon’s promise to reduce delivery times to just one day for all Prime subscribers, which is the reason why the Seattle based American multinational company has invested so heavily in improving their overall transport capacity  through programs like this.

In addition to the financial assistance, employees who take Amazon up on its offer will get a consistent stream of packages to deliver and access to technology and training. Amazon will also offer discounts on insurance and on Amazon vans and uniforms.

The company has received a lot of criticism in recent years in how they treat their warehouse employees and contract drivers. However perhaps in response to the negative press the company received it announced last October that it would raise its minimum wage from $11 an hour to $15 an hour, for full time workers.

Also what isn’t clear regarding the $10,000 startup cost is whether the funds provided by Amazon are to be repaid at some point.

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