The Car and Truck Fleet and Leasing Management Magazine

Amazon Flex Program is Like Uber for Last-Mile Delivery

September 29, 2015, by Deborah Lockridge - Also by this author

Amazon has unveiled what some are calling Uber for last-mile delivery, after the fast-growing service that replaces traditional taxis with an app that links riders and drivers.

Flex would allow ordinary people to make $18 to $25 an hour delivering packages for Amazon using their car and a smartphone, as an independent contractor. 

Flex drivers (must be 21 years old) will deliver ultra-fast Amazon Prime Now packages. This program for paid Amazon Prime members promises deliveries as quickly as one hour for $8, or free for two hours or more. In the future, Flex drivers may deliver other types of Amazon packages as well, according to the website.

Initially launched in Seattle, the service will expand to Manhattan, Baltimore, Miami, Dallas, Austin, Chicago, Indianapolis, Atlanta and Portland.

Amazon says tens of thousands of items are available for delivery under Prime Now including, in Seattle, alcohol, reports The Wall Street Journal.

Amazon has had a significant impact on supply chains and the e-commerce industry in North America and Europe, with its focus on same-day delivery and its developing relationships with 3PL companies for last-mile delivery, according to a survey of third-party logistics provider CEOs, sponsored by Penske Logistics and released Monday.

On average, e-commerce now accounts for an average of 11.85% of North American 3PLs' revenue, and CEOs predict it will increase to 20.85% in three years.

The survey also noted that ride-sharing companies, most notably Uber, are believed to potentially pose a threat to aspects of the 3PL industry in the future by providing last-mile delivery services and taking business away from small-volume couriers.

One problem for this model, however, may be the independent contractor status of these drivers. There already are lawsuits against Uber, grocery delivery startup Instacart, Postmates and others over whether these workers were misclassified and should be entitled to back pay and benefits as employees rather than contractors.

Twitter Facebook Google+

Comments

Please note that comments may be moderated. 
Leave this field empty:
 
 

  1. 1. Big Yellower [ September 30, 2015 @ 07:44AM ]

    Rumor has it that Amazon dumped UPS for own style delivery service a few months ago. Then last week went back to UPS . Due that it's not cost effective to try to start a parcel delivery service costs are in the billions of dollars. Even though uber concept sounds nice . Realistic it's not effective and efficient . To be efficient you need package cars, box trucks, sprinter vans and semis. Cars won't cut it due to size .
    Why try to reinvent the wheel ...

  2. 2. Deliverydriver [ November 25, 2015 @ 05:25PM ]

    Great article here for drivers about the new Amazon Flex sign up process www.zipcourier.net/amazon-flex-orientation

 

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

The process associated with reselling a vehicle.

Read more

Up Next

More From The World's Largest Fleet Publisher