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Move Over UPS: Amazon Delivery Vans to Hit the Streets

Olaoluwa Abimbola, who was part of Amazon's test of the program, said that the amount of packages Amazon needs delivered keeps his business busy

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Move Over UPS: Amazon Delivery Vans to Hit the Streets
Amazon India to host online sales event for SMBs. Pixabay

Your Amazon packages, which usually show up in a UPS truck, an unmarked vehicle or in the hands of a mail carrier, may soon be delivered from an Amazon van.

The online retailer has been looking for a while to find a way to have more control over how its packages are delivered. With its new program rolling out Thursday, contractors around the country can launch businesses that deliver Amazon packages. The move gives Amazon more ways to ship its packages to shoppers without having to rely on UPS, FedEx and other package delivery services.

With these vans on the road, Amazon said more shoppers would be able to track their packages on a map, contact the driver or change where a package is left — all of which it can’t do if the package is in the back of a UPS or FedEx truck.

Amazon has beefed up its delivery network in other ways: It has a fleet of cargo planes it calls “Prime Air,” announced last year that it was building an air cargo hub in Kentucky and pays people as much as $25 an hour to deliver packages with their cars through Amazon Flex.

FILE - Packages move down a conveyor system were they are directed to the proper shipping area at the new Amazon Fulfillment Center, Feb. 9, 2018, in Sacramento, Calif.
FILE – Packages move down a conveyor system were they are directed to the proper shipping area at the new Amazon Fulfillment Center, Feb. 9, 2018, in Sacramento, Calif. (VOA)

Recently, the company has come under fire from President Donald Trump who tweeted that Amazon should pay the U.S. Postal Service more for shipping its packages. Dave Clark, Amazon’s senior vice president of worldwide operations, said the new program is not a response to Trump, but a way to make sure that the company can deliver its growing number of orders. “This is really about meeting growth for our future,” Clark said.

Through the program , Amazon said it can cost as little as $10,000 for someone to start the delivery business. Contractors that participate in the program will be able to lease blue vans with the Amazon logo stamped on it, buy Amazon uniforms for drivers and get support from Amazon to grow their business.

Contractors don’t have to lease the vans, but if they do, those vehicles can only be used to deliver Amazon packages, the company said. The contractor will be responsible for hiring delivery people, and Amazon would be the customer, paying the business to pick up packages from its 75 U.S. delivery centers and dropping them off at shoppers’ doorsteps. An Amazon representative declined to give details on how much it will pay for the deliveries.

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Olaoluwa Abimbola, who was part of Amazon’s test of the program, said that the amount of packages Amazon needs delivered keeps his business busy. He’s hired 40 workers in five months.

“We don’t have to go make sales speeches,” Abimbola said. “There’s constant work, every day. All we have to do is show up.” (VOA)

Next Story

Amazon Delivers 50% of Packages itself Now: Report

Amazon's deliveries will probably reach 6.5 billion by 2022 for $10 a package, the analysts said

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The Number doubled for Amazon in just the last year alone, from delivering about 20 percent of all of its own packages to now about half (46 per cent). VOA

In a serious threat to package delivery giants like FedEx and UPS, Amazon is now delivering 50 per cent of its packages itself especially in the urban centres globally, media reported.

According to Morgan Stanley estimates reported first by CNBC, analysts estimate Amazon Logistics — the company’s in-house shipping and delivery service — will soon overtake UPS and FedEx in the total volume of packages delivered in the US.

Jeff Bezos-led company still relies on third-party couriers for last-mile deliveries in rural regions.

Amazon Logistics now ships more than 2.5 billion packages a year in the US, while FedEx ships 3 billion and UPS delivers 4.7 billion.

Amazon’s deliveries will probably reach 6.5 billion by 2022 for $10 a package, the analysts said, meaning a massive loss of $65 billion in revenue for UPS, FedEx and the US Postal Service.

Amazon’s number doubled in just the last year alone, from delivering about 20 percent of all of its own packages to now about half (46 per cent).

After losing air-shipping contract of global courier company FedEx amid competition, e-commerce major Amazon has added 15 cargo aircraft to its fleet, aiming to reach 70 planes by 2021.

Amazon
In a serious threat to package delivery giants like FedEx and UPS, Amazon is now delivering 50 per cent of its packages itself especially in the urban centres globally, media reported. Pixabay

In a bid to expand its airborne ambitions, e-commerce giant Amazon is investing $1.5 billion in building a three million square-foot Prime Air airport outside Cincinnati in Kentucky as a parking garage for a 100 cargo jets.

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“We’re investing $1.5 billion in our new air hub to get you your packages faster. Three million square feet, and it’s going to create 2,000 jobs. And if you’re guessing that driving a front loader was fun, you’re right! #amazon #prime,” Bezos tweeted recently.

Amazon has a few dozen planes flying several hundred flights per week while UPS and FedEx have hundreds of planes flying thousands of flights. (IANS)