Amazon unveils its new delivery service

Mar 2012
New Hampshire
Cant imagine the Post Office, UPS or FedEx are too happy about this. But its expected.

Watch out FedEx, UPS, DHL and the U.S. Postal Service: Amazon is building its own last-mile delivery service.

The e-commerce behemoth announced on Thursday its new Delivery Service Partners program — designed to let entrepreneurs run their own local delivery networks emblazoned with Prime logos.

Each delivery unit will start their day at one of 75 current Amazon stations in the U.S. where parcels ordered from are picked up by drivers wearing blue-collared shirts with an Amazon logo and black hats. Algorithms will determine which packages are sent to these delivery stations, and which are sent to other delivery partners, like FedEx and UPS. This year, more than 40 percent of all e-commerce purchases will be made on Amazon, according to an eMarketer estimate.

The new program brings more of the costs and customer service under its control, while letting entrepreneurs run the operations under the behemoth’s name.

The e-commerce giant said the program will enable “hundreds” of small businesses to get started, and it will ultimately hire “tens of thousands” of new delivery drivers across the country. This comes at a time when there is a trucker shortage in the U.S., adding to rising transportation costs for many businesses.
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