Amazon to employees: Quit your job, we’ll help you start a delivery business
In efforts to fulfill orders faster, Amazon will help some employees transition to entrepreneurial life. An expansion of its Delivery Service Partner program, the new initiative will give Amazon employees funding to start their own businesses delivering packages for the online retail giant.
Amazon employees who take the plunge will receive funding for “startup costs, up to $10,000, as well as the equivalent of three months of the former employee’s last gross salary.” According to the announcement, Amazon developed the new arm of the program to help employees who are interested in the Delivery Service Partner program but need assistance during the transition process.
The program is reportedly open to a variety of Amazon employees including warehouse workers. However, Whole Foods employees are not eligible to participate in the program.
If a worker decides to participate, they will leave their current role at Amazon and receive help from the company to start their small business. Participants will get “consistent delivery volume” from Amazon, ensuring that there will be packages for them to sustain their business. Participants are also allowed access to Amazon’s deliver technology, hands-on training, and discounts on helpful products and services including Amazon-branded delivery trucks.
Amazon created the Delivery Service Partner program last year, and it has reportedly resulted in the creation of more than 200 small businesses since its inception. Some employees will likely gravitate to the program if they were already interested in starting their own business or if they feel stuck in the daily grind of working in Amazon warehouses. However, if the program proves popular, it’s unclear just how many employees Amazon will let leave their positions and participate in this program.
While Amazon must front some startup costs, the program works toward one of Amazon’s new goals: reduce default Prime shipping times from two days to one day nationwide. The company wants to fulfill orders as quickly as possible so customers are encouraged to buy more from Amazon, knowing the items will arrive in a timely fashion. Two-day shipping as been the default for Prime members for quite some time, but it’s clear that Amazon wants to change that in the coming months and years—if it can find the workforce to sustain the operation.
