In an attempt to fulfill its one-day delivery network, Amazon has offered current employees a startling offer to quit their jobs and start their own delivery businesses.
The demand for one-day delivery fulfillment by Amazon has the company offering employees up to $10,000 for startup costs and the equivalent of three month’s salary to those who participates in the online retailer’s existing Delivery Service Partner program. The program, which began in 2018, has more than 200 businesses working with Amazon to deliver its packages.
“We received overwhelming interest from tens of thousands of individuals who applied to be part of the Delivery Service Partner program, including many employees,” said Dave Clark, senior vice president of worldwide operations. “We’ve heard from associates that they want to participate in the program but struggled with the transition. Now we have a path for those associates with an appetite for opportunities to own their own businesses.”
According to Business Insider, Amazon has been hiring new employees just to keep up with demand.
The release from Amazon Monday states that the company will help employees who are interested in launching their own business leave Amazon and take an active role. The company states it will offer those employees access to delivery technology, hands-on training and discounts Amazon services including vans customized for delivery, uniforms and comprehensive insurance.
“This program is the latest example of Amazon initiatives aimed at encouraging employees to develop and advance their careers,” The company stated. “Across the US, more than 12,000 people have already taken part in Amazon’s Career Choice program where Amazon pre-pays up to 95 percent of tuition for courses related to in-demand fields, up to $12,000, regardless of whether the skills are relevant to a career at Amazon.”
According to Amazon’s most recent small business report, those who participated in this program and were successful earned between $75,000 and $300,000 in 2018.
According to the Motely Fool, Amazon has long said that it relied heavily on its third-party courier network, which includes companies like FedEx, United Parcel Service, and the U.S. Postal Service to handle package shipments to consumers.
“By augmenting the capabilities of its existing network, Amazon could potentially reduce its shipping costs while ensuring additional capacity during times of peak volume — like the holidays,” Motely Fool reported.
Amazon hopes to add more companies to its program this year, starting with employees-turned-business-owners, the company stated. The program has even been expanded to employees in the UK and Spain. For Amazon to keep its promise on one-day delivery, they better hope that employees will take the bait and start their own businesses. It is not stated if the employees will have to repay the $10,000 to start their own delivery business or the terms of the contract.
Sources: Aboutamazon.com, Business Insider, Motley Fool