Amazon To Speed Up Delivery Service With Flex
Amazon is all set to expand its on-demand delivery service by hiring new drivers.
Amazon Inc. is more than determined to create its own shipping network in the coming days. The online retailer is not satisfied with the service shipping networks like FedEx and UPS are providing to its loyal customers. Inadequate attempts of delivering packages have cost the company hundreds of customers recently. Another option was the domestic postal service that has also disappointing.
All of this forced the US retailer to work on its logistics department. The news came out past weeks when it leased 20 cargo jets to establish an air-shipping network for faster delivery service. According to CNBC, Amazon is looking for opportunities to expand deliveries by on-demand drivers. It has started inviting drivers discreetly for its new service known as on demand delivery that will be handling the standard packages of the firm.
Amazon is well known for its low price product list and razor thin profit margins; hence, it is looking to speed up the delivery times and reduce the size of its ever-growing multibillion-dollar logistics bill. It has not yet made an official or public announcement regarding this move but it is an obvious sign that the company is looking to take over the operations of its own deliveries.
The online ecommerce organization has plans to lease its own fleet of jets according to the reports published by the media. The CEO of the firm, Jeff Bezos, also wants the use of drones to be approved in order to deliver packages to customers within one to two hour period.
The e-commerce giant has revealed its plans via email, which it sent in the last few weeks to contract drivers who are already working for Amazon Flex to deliver packages. Amazon Flex was launched last year exclusively for the Amazon Prime members. It is known for handling fast deliveries of daily routine household items if the customer is using Prime Now service. Drivers contracted or working for Flex are not actual Amazon employees.
If all goes according to the plan, it will help the business in reducing its hefty billing costs that jumped 18% to $11.5 billion in 2015. Industry analysts are confident that the company can pull this off easily.
So far, three Amazon Flex drivers from northern Texas came in front to tell Reuters that the company has approached them through emails in recent weeks. The invitation was to participate in a new ‘opportunity to deliver orders, separate from existing Prime Now deliveries.’ Reuters reported.
According to Reuters, the company said in the email to drivers, “This new stream of packages will create new delivery opportunities. The expansion appears to be limited so far to select drivers in the Dallas-Fort Worth area.”
Rob Howard, chief executive of logistics tech company, Grand Junction, said, “This is a huge competitive advantage for Amazon. It’s not a death sentence yet for local carriers but it’s a new path.”