Amazon looks to make employees a driver offer they can’t refuse
May 14 2019
Amazonannounced on Monday that it was offering employees $10,000 to quit their jobs and become independent package delivery entrepreneurs as the online giant ramps up efforts to control its own logistics.
The company said it now plans to fund startup costs, up to $10,000, as well as supplement three months of the former employee's last gross salary to get the delivery business of the ground.
Amazon created the Delivery Service Partner program a year ago, and it has reportedly resulted in the creation of more than 200 small businesses since its inception.
According to Dave Clark, Amazon's senior vice president of worldwide operations, many Amazon employees have expressed interest in being business owners but were deterred by the financial uncertainties surrounding the shift to self-employment status.
The offer comes as the company tries to decrease its shipping times for Amazon Prime members.
Amazon delivered more than five billion packages under its Prime subscription service in 2017, which continues to attract customers with benefits that include free shipping, streaming video and music.
"We've heard from associates that they want to participate in the program but struggled with the transition".
The offer is open to most part-time and full-time Amazon employees, including warehouse workers who pack and ship orders. "Now we have a path for those associates with an appetite for opportunities to own their own businesses".
Amazon's website offers everything from jewelry and electronics to health and beauty care products.
Even as it introduces new forms of automation, Amazon says it is still expanding its workforce overall. "It would be interesting to see what your pay would work out to on an hourly basis".
In launching the program, Amazon said the total revenue potential for Delivery Service Partner companies would be $1 million to $4.5 million a year once a company reaches critical mass.
Amazon says people interested in starting DSP companies should have at least $30,000 in liquid assets to take part in the program. 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. Whole Foods employees are not eligible to receive the new incentives.