Monday, 27 May, 2019

Amazon offers incentives to employees to start their own delivery business

Amazon to employees We’ll pay you to quit and haul packages Amazon to employees: We'll pay you to quit and haul packages
Russell Knight | 14 May, 2019, 16:27

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 USA delivery start-up.

Racing to get to one-day shipping for its Prime members, Amazon is asking employees to quit and offering them help starting their own delivery businesses.

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".

Overall, more than 200 Amazon delivery businesses have been created since it launched the program last June, says John Felton, Amazon's vice president of global delivery services. Whole Foods employees are not eligible to receive the new incentives.

In order for an employee to participate in the program, they will have to leave their current position at Amazon.

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Amazon.com, Inc.'s (NASDAQ:AMZN) need for personnel to staff its package delivery network is so acute that it is looking inside its four walls to recruit them.

Since a year ago, some 200 people have begun Amazon delivery start-ups, and the company said it expects "hundreds" more with the added incentives, available in the United States, Britain and Spain.

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.

"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", the release states.

The AP spoke to Milton Collier, who opened one such business in Atlanta, GA, eight months ago. Because more sales are happening online and more companies are trying to compete on service as well as sales, delivery drivers are in high demand. Since then, it has grown to include 50 vehicles and about 120 employees.

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