Your next Amazon order might just arrive via a local business. According to a statement released to Axios, Amazon is rolling out its Amazon Hub Delivery program that employs small businesses in 23 states, including California, New York, and Washington, to facilitate customer deliveries. The only prerequisites for these businesses include having secure storage spaces and the capacity to deliver an average of 30 packages daily, excluding major holidays. Amazon is open to collaborating with businesses of all types for this initiative, whether they’re bodegas, coffee shops, florists or other establishments.
The Amazon Hub Delivery program is, in fact, an extension of previous ventures. Amazon first introduced the “I Have Space” program in India back in 2015, before implementing it in Japan and Spain. The US pilot program, which focused on enhancing rural customer delivery, was initiated in late 2020. The latest extension includes over 20 major cities such as Boston, New York City, and Los Angeles.
There are clear benefits for both parties. Amazon ensures more reliable “last mile” deliveries by delegating them to local businesses instead of solely depending on dedicated courier services. Small business partners, on the other hand, get the opportunity to expand their operations and supplement their revenue, as Amazon VP Beryl Tomay pointed out. Axios suggests that with annual earnings of $27,000 per business, Amazon would effectively be paying approximately $2.50 per package. Amazon aims to collaborate with 2,500 small business drivers by the end of 2023.
This strategic move follows several months after Amazon’s announcement of substantial layoffs due to the economic turbulence caused by the pandemic recovery. Amid labor issues and previous accusations of misappropriating Flex drivers’ tips, the Hub Delivery initiative could potentially assist Amazon in reducing costs and mitigating labor-related disputes by reducing reliance on its own shipping personnel. However, Amazon isn’t entirely relinquishing its own workforce for deliveries. It plans to continue its commitment to purchase around 100,000 Rivian delivery vans for direct customer deliveries.
Frequently Asked Questions (FAQs) about Amazon Hub Delivery
What is Amazon’s new Hub Delivery program?
Amazon’s Hub Delivery program is a new initiative that uses local businesses to help deliver packages to customers. Small businesses in 23 states, including various types like bodegas, coffee shops, and florists, can qualify for this program.
How does the Amazon Hub Delivery program work?
Businesses that participate in Amazon’s Hub Delivery program need to have secure storage areas and must deliver an average of 30 packages every day outside of major holidays. The businesses can then grow their operations and supplement their revenue.
What are the incentives for Amazon and small businesses with the Hub Delivery program?
Amazon ensures more reliable “last mile” deliveries by delegating them to local businesses instead of depending solely on dedicated courier services. Small business partners, on the other hand, have the opportunity to expand their operations and supplement their revenue.
What are the requirements for a business to participate in the Amazon Hub Delivery program?
The only prerequisites for businesses include having secure storage spaces and the ability to deliver an average of 30 packages daily, excluding major holidays. Amazon is open to partnering with businesses of all types for this initiative.
Where has Amazon previously implemented similar programs?
Amazon first introduced the “I Have Space” program in India back in 2015, before implementing it in Japan and Spain. The US pilot program was initiated in late 2020 focusing on improving delivery for rural customers.
More about Amazon Hub Delivery
- Amazon’s Hub Delivery Program
- Amazon’s Previous Delivery Efforts
- Amazon and Small Businesses
- Amazon’s “I Have Space” Program
- Beryl Tomay, Amazon VP
6 comments
This seems like a smart move, but what about the quality of delivery? I mean, can we trust these small businesses with our packages just like we do with dedicated couriers?
Interesting strategy but what happens if a package goes missing or gets damaged, who’s responsible then? Got to consider that as well.
Wow, my florist shop delivering packages… can’t wrap my head around this. But if it helps grow the business, why not?
Whoa!! this is big. never thought my little coffee shop might become part of amazons delivery network. Interesting indeed…
its a win-win situation, Amazon gets its packages delivered and small businesses get a boost. I like it!
This sounds like a great opportunity for small businesses, especially in these tough times…amazon really stepping up their game here!!