Amazon is enticing its own employees to start package delivery businesses, announcing Monday (May 13) a new incentive that will provide them with up to $10,000 for startup costs.
In a press release, the eCommerce giant said the new incentive, which is part of its Delivery Service Partner program, will cover startup costs up to $10,000 and the equivalent of three months of the former employee’s last gross salary. The idea is to enable employees-turned-business-owners to more easily get their package delivery businesses up and running.
“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 for Amazon, said in the press release. “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 associates with an appetite for opportunities to own their own businesses.”
Amazon said it will take an active role in helping interested employees launch their own package delivery businesses. The former employees — now entrepreneurs — will have consistent delivery volume from Amazon, access to the company’s delivery technology, hands-on training and discounts on a suite of services such as Amazon branded vans, uniforms, and comprehensive insurance, the eCommerce giant said in the press release. Amazon said the new incentive is another example of the company’s efforts to encourage employees to advance their careers.
The new incentive furthers Amazon plan to boost its own delivery network and rely less on the likes of FedEx and UPS. As it stands, Amazon delivers its own orders in more than 37 cities across the U.S. Since launching the Delivery Service Partners program last June, Amazon said, it has enabled the creation of more than 200 new small businesses that have hired thousands of local drivers. Amazon said in the press release it plans to add hundreds of more new businesses, starting with employees-turned-business-owners.