Amazon to expand delivery network

Posted by Ovunc Kutlu | 29 June 2018 | 895 times

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Amazon announced Thursday a new initiative to expand its delivery network, in an attempt to diversify its dependency on the nation’s postal service which President Donald Trump has criticized.

The company said in a statement Thursday it will help individual entrepreneurs to build and run their own delivery companies.

With startup costs as low as $10,000, owners can operate a fleet of up to 40 delivery vehicles and could make $300,000 in annual profit, according to the statement.

Amazon said owners would have access to the company’s delivery technology, hands-on training, discounts on some assets and services such as vehicle leases.

The move may have come as Trump recently slammed Amazon on several occasions for taking advantage of the USPS that is an independent agency of the federal government.

"Why is the United States Post Office [USPS], which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber or poorer? Should be charging MUCH MORE!," he wrote Dec. 29 on Twitter.

"I am right about Amazon costing the United States Post Office massive amount of money for being their Delivery Boy " he later wrote on April 3.

Trump’s criticism also stems from founder and CEO Jeff Bezos, the world's richest person, who owns the Washington Post that have written stories that have been critical of Trump before and after his election.

While delivery rates between Amazon and USPS, and other couriers like FedEx and UPS, are undisclosed and renewed annually, the e-commerce giant may have found a way to diversify its delivery methods.

There will also be deals for owners on Amazon-branded vehicles, branded uniforms, fuel and comprehensive insurance coverage.

“Customer demand is higher than ever and we have a need to build more capacity," Amazon’s senior vice president of worldwide operations Dave Clark said in the statement, adding, "it’s exciting to continue to see the logistics industry grow." (Anadolu)


Source: News Express

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