Amazon is trying to entice entrepreneurs to launch their own delivery companies, an initiative that could end up lowering the e-commerce giant’s dependence on the U.S. Postal Service and blunt future attacks from President Trump.
Retailers across industry sectors are grappling with how to deliver packages as close to the customer as possible in the shortest about of time. Other companies, struggling to compete against Amazon’s dominance, have relied upon traditional carriers like FedEx to help solve the so-called “last mile” problem.
Amazon instead is hoping that individuals eager to align themselves with the Seattle-based behemoth will opt to start their own logistics business. The company plans to take an active role in the creation of the new delivery companies as owners will have access to a “variety of exclusively negotiated discounts” for business supplies, like Amazon-branded vehicles and insurance coverage, Amazon announced on Thursday.
“We have great partners in our traditional carriers and it’s exciting to continue to see the logistics industry grow,” Dave Clark, Amazon’s senior vice president of worldwide operations, said in a statement. “Customer demand is higher than ever and we have a need to build more capacity.”
The new strategy comes as the company is facing increasing pressure from the White House over its current delivery system. Trump routinely attacks both Amazon founder Jeff Bezos and the Bezos-owned Washington Post, a poster-child of Trump’s ongoing attack on the news media.
Trump previously charged that USPS was subsidizing Amazon’s deliveries and ordered an investigation into the independent agency. A recent study found that USPS could actually lose revenue if it were to charge higher prices to deliver Amazon products.
Amazon is specifically targeting the armed forces with its new initiative. Military veterans interested in pursuing a delivery startup can receive $10,000 in reimbursements from the company.
