New Amazon initiative helps employees start their own package delivery business

Amazon announced the expansion of its Delivery Service Partner program in the US with a new incentive for current Amazon employees to start a small business owning and operating a package delivery company. The new incentive will fund the startup costs, up to $10,000, as well as the equivalent of three months of the former employee’s last gross salary so employees-turned-business-owners can more easily get their package delivery companies off the ground.

“We received overwhelming interest from tens of thousands of individuals who applied to be part of the Delivery Service Partner program, including many employees,” said Dave Clark, senior vice president of worldwide operations. “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 will take an active role in helping interested employees launch their own package delivery businesses. An employee will leave their role at Amazon to build their business knowing they will have consistent delivery volume from Amazon, access to the company’s sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, including Amazon-branded vans customized for delivery, branded uniforms and comprehensive insurance.

Amazon’s new incentive will fund the startup costs, up to $10,000, for its employees-turned-small business-owners in the US who want to build their own delivery companies. Amazon will also provide financial support with a payment equal to three months of the former employee’s last gross salary while they build their new package delivery business.

This program is the latest example of Amazon initiatives aimed at encouraging employees to develop and advance their careers. Across the US, more than 12,000 people have already taken part in Amazon’s Career Choice program where Amazon pre-pays up to 95% of tuition for courses related to in-demand fields, up to $12,000, regardless of whether the skills are relevant to a career at Amazon.

Since the launch of the Delivery Service Partner program in June 2018, Amazon has enabled the creation of more than 200 new small businesses that have hired thousands of local drivers to deliver packages to Amazon customers. This year, the company plans to add hundreds more new businesses, starting with employees-turned-business-owners. Additionally, this program offering has expanded to employees in the UK and Spain.