- Amazon.com, Inc. (NASDAQ: AMZN) has been working with rural mom-and-pop shops as part of an experimental delivery program. This is how it works.
Amazon.com, Inc. (NASDAQ: AMZN) has been working with rural mom-and-pop shops as part of an experimental delivery program, according to Vox. The program has been running since at least last summer.
Amazon is paying participating small businesses a per-package fee for delivering Amazon orders within a 10-mile radius to homes in states such as Nebraska, Mississippi, and Alabama.
These local businesses include florists, restaurants, IT shops, etc. None of these shops are required to have previous delivery experience. But they are required to commit to delivering Amazon packages 7 days a week around 360 days a year. Plus they must have a physical location for receiving parcels every morning. Internally this program is being called: Amazon Hub Delivery Partner.
Amazon has a goal of speeding up delivery times and handling more of its own deliveries. Locations in rural America have been some of the most challenging for Amazon. And while delivery drivers in cities and suburbs may be able to deliver 2 dozen packages per hour or more, the distances between homes in remote communities generally see about half of that amount. So Amazon has been depending more on partners like UPS and the US Postal Service for those locations.
The local business delivery beta test aims to potentially replace existing partners as Amazon’s sales grow. And Amazon is hoping that this new program could help the company take more control over customer deliveries. Amazon has been testing similar programs in several international markets like India.
Some of the main reasons why Amazon is only recruiting existing businesses is because they already have liability insurance. These small businesses are being paid about $2.50 to $3 per package. And these businesses were recently successful in convincing Amazon to add increases to the rates as gas prices surged. Business owners can make about $1,500 to $2,000 per week if they deliver about 600 to 800 packages weekly.
“All of our partners operate primary businesses and this program provides opportunity to help supplement their income,” said Amazon spokesperson Lauren Samaha in a statement via Vox.
