Amazon is expanding its last-mile delivery capabilities by recruiting small businesses to join its Hub Delivery program. The program, which was first reported by Axios last year, aims to have more than 2,500 small businesses deliver packages for Amazon by the end of 2023.
The company is actively looking for partners in 23 states, with a focus on rural areas and five large cities — New York City, Boston, Seattle, Los Angeles and Hoboken, New Jersey. Businesses that become partners with the program commit to delivering 20 to 50 packages daily for Amazon customers in their area, using their own staff and vehicles. They will be paid for each package delivered and deliveries can be made "when you have time during the day," according to the company's website.
Amazon Hub Delivery adds to the mix of ways the company can complete last-mile deliveries outside of using traditional parcel carriers. Amazon also leverages contractors with its Delivery Service Partner program and gig drivers via Amazon Flex.
The company had been recruiting small businesses for its Hub Delivery program since at least 2021 in a push to reduce rural delivery costs, Vox reported. For small businesses participating in the Hub Delivery program, its formal launch offers up another source of income outside their main products and services. Partners are able to earn up to $27,000 per year, according to Amazon. Businesses the company is interested in working with for Hub Delivery include florists, coffee shops, clothing boutiques, gas stations, plumbers and hair salons.
Once a business becomes a partner, it commits to delivering packages seven days a week for Amazon. Amazon will drop off packages at the partner's location for delivery. The designated location must provide access for a 24-foot box truck to park and unload the packages.
"As customers’ needs evolve, we’ve seen differences in how we deliver in towns and cities we serve and the need to find a nimbler solution in specific geographies, like super rural areas or congested large cities," Beryl Tomay, VP of last-mile delivery and technology at Amazon, said Monday.
Sources: https://www.supplychaindive.com/news/amazon-hub-delivery-small-business-partners/653944/
