Amazon to pay employees to quit and start their own delivery businesses
Amazon is upping the stakes to increase its shipping time by turning to its employees for help.
On Monday, the e-commerce giant announced a new initiative to pay employees to quit and start their own delivery business to help them meet its goal of one day delivery for Prime Members.
The new incentive is an expansion of its Delivery Service Partner Program that allows current Amazon employees a chance to start their own small business delivery company with its backing.
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.
The move is a way for Amazon is to control more of its deliveries, rather than relying on the U.S. postal service or other carriers such as UPS. The only caveat is that the startups can only deliver Amazon and Whole Foods products.
Since the program launched last year, more than 200 new small businesses have launched as a result.
“We received overwhelming interest from tens of thousands of individuals who applied to be part of the Delivery Service Partner program, including many employees,” Dave Clark, senior vice president of worldwide operations at Amazon said.
In addition to the cash, Amazon will provide hands-on-training, access to delivery technology and discounts on assets and services, including its own-branded delivery vans and uniforms.
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“We’ve heard from associates that they want to participate in the program but struggled with the transition. Now we have a path for those associated with an appetite for opportunities to own their own businesses.”
The offer is up open most part-time and full-time Amazon employees, including warehouse workers who already pack and ship order. Whole Foods employees, however, are not eligible.
