Delivery from Amazon may take a little less time with its new program that uses local partners to make “last mile” deliveries.
Key Details
- By next year, small businesses, bodegas, and florists will make Amazon deliveries to local customers.
- The company is actively recruiting businesses in 23 U.S. states and around 20 cities to participate in the program, Axios reports.
- Amazon does not require its partners to have prior delivery experience.
- The program, Amazon Hub Delivery, is the company’s latest initiative to have third-party workforces complete the final delivery steps.
Why it’s news
While Amazon is a delivery giant, it is currently struggling against growing labor costs and other expenses. It has also received bad press over its treatment of drivers in recent years. By passing delivery along to third parties, it can reduce some costs and distance itself from criticism.
Amazon Hub Delivery will mean less work for the company but also new revenue streams for small businesses. Program participants must deliver an average of 30 packages seven days a week—excluding major holidays.
Amazon delivery drivers would drop off packages to the local business, which would be stored securely until the employees can make deliveries. Vice president of Amazon Last Mile Delivery And Technology Beryl Tomay explains the service, saying it will “create opportunities for delivery partners interested in growing a business … and supplementing their income.”
While the program is new to the U.S., Amazon has run similar initiatives in India, Axios reports. The project was initiated with “I Have Space” in 2015. Similar programs are now in Japan and Spain. In 2020, Amazon tested a pilot program in rural parts of the U.S.
Small businesses will be able to make additional revenue, but how much they can make will depend on their location and the number of program participants. The company says partners can make up to $27,000 per year. Amazon has a goal of 2,500 participants by the end of 2023.
