Amazon Taps Small Businesses for Last Mile Delivery Network - Modern Distribution Management

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Amazon Taps Small Businesses for Last Mile Delivery Network

The new delivery program has a goal of recruiting approximately 2,500 small business partners by the end of this year.

On June 26, eCommerce behemoth Amazon announced a program it has been building since 2020 that will pay small businesses to deliver packages as part of its “last mile delivery service,” according to media reports and statements from Amazon.

“As customers’ needs evolve, we’ve seen differences in how we deliver in towns and cities we serve and the need to find a nimbler solution in specific geographies, like super rural areas or dense large cities,” said Beryl Tomay, Vice President of Last Mile Delivery and Technology, in a blog post. “That’s why we are excited to launch our newest delivery program, aimed at empowering small businesses and creating new opportunities for them to grow and scale their businesses.”

For years, Amazon has been working with third-party delivery companies and increasing its warehouses spaces to deliver products more efficiently, according to a report from the Associated Press.

Amazon said the new program, called Amazon Hub Delivery, partners with small businesses that have a “strong understanding of the local neighborhoods to deliver Amazon packages.” The company said the program provides a flexible new way for partners to boost their bottom lines while working with their existing staff and equipment.

It is not necessary for small businesses to have delivery experience to apply for the program, according to Amazon. The company said businesses need to be able to make deliveries daily, deliver packages with existing staff and vehicles and receive packages daily and store them until delivery.

In the blog post written by Tomay, the company offers an example of a hair salon owner filling schedule gaps in their day by utilizing the Amazon Hub Delivery program. Through the new delivery program, Amazon said it has a goal of recruiting approximately 2,500 small business partners by the end of this year.

“We have piloted the program in rural areas of the U.S. and now plan to scale it and even bring it to dense large cities like New York, Los Angeles, Seattle, and Boston, with the goal to recruit 2,500 partners in 23 states by the end of the year, including florists, coffee shops, clothing boutiques, gas stations, plumbers, and hair salons,” Tomay wrote.

Small businesses that partner with Amazon can make up to $27,000 in incremental income each year, Amazon said. If Amazon reaches its goal of onboarding 2,500 partners, the eCommerce titan said the program could result in $38 million in incremental income for participating businesses in 2023.

Read more about Amazon’s new delivery program here.

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