Amazon Pays Employees to Start Businesses

Amazon Pays Employees to Start Businesses

Amazon said on Monday that it would pay the equivalent of three months of their most recent gross salaries - as much as $10,000 - if employees want to leave the company and form a new United States delivery start-up.

The new incentive is an expansion of its Delivery Service Partner Program that allows current Amazon employees a chance to start their own small business delivery company with its backing.

The incentive would provide employees with $10,000 to fund the startup and three months of the employee's salary so they "can more easily get their package delivery companies off the ground".

Qualified employees would become part of the company's "Delivery Service Partner" program. Delivery service owners running 20 to 40 vans can expect to bring in annual revenues of $1 million to $4.5 million, with profits of $75,000 to $300,000, Amazon says in a brochure about the program. Whole Foods employees, however, are not eligible.

The scheme will offer employees training and "consistent package delivery volume" from Amazon.

The offer, open to most part-time and full-time Amazon employees, comes on the heels of the company's recent move to speed up its shipping time for Prime members from two days to one.

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Amazon is trying to get away from relying on others to deliver its packages.

The move is a way for Amazon is to control more of its deliveries, rather than relying on the US postal service or other carriers such as UPS. They also will have access to Amazon-branded vans customized for delivery, branded uniforms and comprehensive insurance.

Still, Schlactus also said there's never been a better time to be a delivery driver or operate a delivery business.

One of them is run by Milton Collier, a freight broker who started his business in Atlanta about eight months ago. Since then, it has grown to include 50 vehicles and about 120 employees. It has already been preparing for the one-day shipping switch by hiring more people.

Amazon said since it has started the delivery service, there have been more than 200 independent contractors who signed up to handle the deliveries.

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