By Nnamdi Odumody
In order to speed up the Amazon Prime delivery process to single day delivery, Amazon is expanding its Delivery Service Partner programme which now offers incentives for its employees to start their own logistics service.
Following news of Amazon’s plans to reduce Prime shipping down to one day, the company this morning announced an expansion of its Delivery Service Partner program, which now includes a new incentive that encourages existing Amazon employees to start their own package delivery company. The partner program, first announced last year, includes access to Amazon’s delivery technology, hands-on training and a suite of other discounts for assets and services like vehicle leasing and insurance. For employees, it now includes a $10,000 incentive, too.
The retailer says it will fund startup costs up to $10,000, as well as the equivalent of three months of the former employee’s last gross salary, to give the employees the ability to get their new business off the ground without worrying about a break in pay.
The Amazon Partner Programme which was launched in 2018 includes access to Amazon’s delivery technology, hands on training, and discounts for assets and services like vehicles, insurance, etc.
It will now offer its employees $10,000 and the equivalent of three months of their last gross salary so that they can start their delivery businesses without cash issues. This is as a result of the fact that military vets in 2018 were able to start their own delivery packaging businesses with $10,000.
Amazon will offer delivery vans with its branded logo on lease to its delivery partners as well as other discounts which include fuel, insurance, branded uniforms, etc.
The decision by the e-commerce giant to launch the partner programme was as a result of the fact that its Amazon Flex crowdsourced workforce had issues that affected their earnings. Those issues include fluctuating fuel costs, no insurance cover and other general problems which affect the last mile delivery by logistics companies using smaller vehicles. By growing their fleet to 40 vehicles, the delivery partners could earn as much as $300,000 in annual profits.
As a result of the fact that it has invested heavily in automation of its fulfillment centres which will make most of its employees operating in them to lose their jobs, the decision to empower them through the Amazon Partner programme which it has committed about $800 million is a strategic redesign aimed at offering its customers same day delivery through its Amazon Prime ecosystem.
Amazon’s Partner Programme is a modified version of the Igbo apprentice scheme where an entrepreneur empowers his former employee who has served him for about seven years with startup capital, and other necessary supports, to take off in the same line of business towards reducing the frictions which exist as well as poverty rate in the locality.
Nigerian FMCGs, Banks and other retail focused businesses can learn from the Amazon Partner Programme as a means of empowering their former employees to start their same line of business, within their ecosystems, fixing business frictions quicker, and creating a win-win for all .