The Seattle-based e-taling giant announced on May 13 that it will pay each qualified employee up to $10,000 in start-up costs to launch their own delivery business, and will offer each the equivalent of three months of pay at their last gross salary to ease the transition from company worker to independent contractor.
"An employee will leave their role at Amazon to build their business knowing they will have consistent delivery volume from Amazon, access to the company's sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, including Amazon-branded vans customized for delivery, branded uniforms and comprehensive insurance", Amazon said in a news release.
Amazon first launched the "delivery service partner" program in 2018, requiring employees to invest in their own start and estimating revenues for up to $300,000.
The news coincides with a push by the company to shift its core Amazon Prime delivery benefit to free one-day shipping, from its longtime benefit of free two-day shipping.
Amazon expands "Key by Amazon" service to allow deliveries into customers' garages; Disney could earn as much as 45 to 50 percent of all ticket sales in North America this summer according to a report in The Warp. It's sure to prove very popular with employees who'd like a change of career or a bit more control over what they do every day at work. The company sees the new incentive as a way to get more packages delivered to shoppers' doorsteps faster. "Now we have a path for those associates with an appetite for opportunities to own their own businesses".
Once accepted, Amazon says it will pay the former employees what amounts to three months of their former wages.
Amazon's shopping experience and Prime subscriptions rely heavily on the company's ability to deliver orders extremely quickly.
Even as it introduces new forms of automation, Amazon says it is still expanding its workforce overall. The drivers are typically on the employee's payroll, and the employee is responsible for matching blocks of work for drivers with Amazon's seemingly insatiable demand for delivery services. This latest announcement is an expansion of that program, which resulted in the creation of more than 200 delivery businesses opened to deliver for Amazon. However, Whole Foods employees are not eligible to participate in the program.