Amazon is building a network of small businesses in 23 states to help it deliver packages to consumers, but don’t expect the system to be up and running before Prime Day.
The retail giant tells Axios it hopes to attract thousands of mom-and-pops by the end of the year for its Amazon Hub Delivery program. Participating businesses will need to pledge to deliver an average of 30 packages per day (holidays excluded).
Pretty much any business can sign up for the program, from delivery companies to florists. The program is an expansion of a similar initiative, which sought to improve deliveries in rural areas. This time around, Amazon is focusing on bigger markets, including Boston, New York, Los Angeles, and Seattle. The program first started in 2015 in India and has slowly been expanded since.
Amazon didn’t say what the small businesses could earn per package, but the average earnings worked out to $27,000 per year, said Axios.
The company will begin recruiting stores in 23 states, starting today. Among the areas where it's looking for partners are Alabama, Alaska, Arkansas, California, Florida, Iowa, Indiana, Illinois, Massachusetts, Minnesota, North Carolina, North Dakota, New Jersey, New York, Ohio, South Dakota, and Washington.
The process works like this: Amazon will deliver packages to the business, which will store them in a secure holding area. As the company has time during the day, they’ll take those shipments the final step, ensuring they get into nearby consumers’ hands. Payments are made on a per-package basis. Delivery experience is not necessary, Amazon says. And there are no long-term contracts.
The expansion of the program comes as Amazon has seen pushback from its drivers over the expected pace of deliveries.
