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Amazon offers to help employees start delivery business

Amazon rolls out machines that pack orders and replace jobs Amazon offers to help employees start delivery business
Ginger Lawrence | 15 May, 2019, 08:49

Amazon is offering United Kingdom employees thousands of pounds to quit their jobs and set up as independent delivery businesses in an effort to keep delivery capacity up with demand.

Amazon wants its employees to start their own businesses and is going to help.

According to Amazon, current employees may receive up to $10, 000 to fund startup costs as well as the equivalent of three months of their last gross salary to turn into a package delivery entrepreneur.

"Since the launch of the Delivery Service Partner program in June 2018, Amazon has enabled the creation of more than 200 new small businesses that have hired thousands of local drivers to deliver packages to Amazon customers", Amazon said in Monday's statement.

John Felton is Amazon's vice president of global delivery services. The company sees the new incentive as a way to get more packages delivered to shoppers' doorsteps faster.

The offer is open to most part-time and full-time Amazon employees, including those working in warehouses and other places where products are stored.

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The program was announced just two weeks after Amazon announced it would end its standard two-day shipping for Prime members, in order to lower it to next-day shipping.

The offering is the latest effort by Amazon to discourage its workers from staying if they don't want to stay.

Amazon said it will cover up to $10,000 in startup costs for employees who are accepted into the program and leave their jobs.

The move is a way for Amazon is to control more of its deliveries, rather than relying on the USA postal service or other carriers such as UPS. But Amazon said they will receive consistent delivery volume from the e-commerce giant as well as access to its "delivery technology, hands-on training, and discounts on a suite of assets and services", which includes Amazon vans, uniforms, and comprehensive insurance.

One of them is run Milton Collier, a freight broker who started his business in Atlanta about eight months ago. Amazon said it intends "to add hundreds more new businesses" this year.

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