Launch Of Amazon’s Local Delivery Network For Businesses

(CTN News) – According to Axios, Amazon will be partnering with thousands of U.S. small businesses, from bodegas to florists, as part of its plan to deliver packages by the end of the year.

On Monday, Amazon will begin actively recruiting existing small businesses in 23 states, including Alabama, Alaska, Arkansas, California, Florida, Iowa, Indiana, Illinois, Massachusetts, Minnesota, North Carolina, North Dakota, New Jersey, New York, Ohio, South Dakota, and Washington. This is driving the news.

• According to the program, there will be at least 20 dense cities across the country that will be targeted, including Boston, New York, Los Angeles, and Seattle.

• The company is interested in working with a wide range of businesses, including florists, coffee shops, clothing stores, among others. In order to make this partnership successful, Amazon does not require any delivery experience.

It’s important to keep in mind that Amazon Hub Delivery is the company’s latest attempt to expand its “last mile” network – the final stage in logistics where packages are ultimately delivered to their recipients – through external labor services.

As part of the program, participating businesses deliver an average of 30 packages a day, seven days a week, excluding major holidays.

• In the meantime, drivers from Delivery Service Partner network deliver the packages to local businesses, which also have to have a secure area to store the packages.

• Although Amazon refused to disclose exactly how much it pays per package, based on earnings of $27,000 a year, the rate would be about $2.50 a package based on the earnings.

According to Amazon Last Mile Delivery and Technology vice president Beryl Tomay, in an email interview with Axios, the new program will help “create opportunities for delivery partners interested in growing a business and supplementing their income” by providing them with opportunities to create new business opportunities.

As a brief flashback, Amazon’s concept originated in India as a model called “I Have Space” in 2015.

• During the last two years, the program has been launched in Japan and Spain, and a U.S. pilot program focusing on rural areas of the country was launched toward the end of 2020.

It’s important to realize that Amazon wants businesses to see Hub as an opportunity for new revenue streams. There is a good chance that what each of them ends up making will vary based on the area where they reside and the number of businesses that have signed up.

• By the end of 2023, Amazon says that it plans to partner with 2,500 small businesses in the form of small business drivers.

At its macro level, consumers may have slowed their spending somewhat, but they still expect certainty when it comes to shipping costs at least for the next few months.

• There is no doubt that Amazon will continue to strengthen its delivery capabilities against this backdrop, as it battles rising costs as well as competition for labor, as well as criticism that it treats its drivers like robots.

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