The company will purchase and brand delivery vans. They will then lease the vans at low rates to new delivery businesses. Amazon will also provide uniforms, insurance programs, fueling plans, and even business classes to help the delivery companies get started.
Amazon says that an owner could start an Amazon delivery service for less than $10,000. That’s if they’re a one-person operation. It would cost more to hire other drivers.
Dave Clark is the senior vice president of worldwide operations at Amazon. He said that if a company leased 40 vans, they could earn a profit of $300,000 per year. Amazon has not yet said what they will base their payments to companies on. Some speculate that it will be per mile, others that it will be per delivery, still others a percentage of the sale per delivery. It could also be a shared revenue source from Amazon Prime membership fees.
They will also continue the Flex program, paying individuals for making deliveries via their personal vehicles.
