How Amazon Turns Former Employees Into Small Business Owners

May 13, 2019 by Chris Lange

Amazon.com Inc. (NASDAQ: AMZN) announced early on Monday that it will expand its Delivery Service Partner program in the United States with a new incentive for current Amazon employees to start a small business owning and operating a package delivery company.

Accordingly, the new incentive will fund the startup costs, up to $10,000, as well as the equivalent of three months of the former employee’s last gross salary so employees-turned-business-owners can more easily get their package delivery companies off the ground.

Amazon will take an active role in helping interested employees launch their own package delivery businesses. 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.

Since the launch of the Delivery Service Partner program in June 2018, Amazon has enabled the creation of more than 200 new small businesses that have hired thousands of local drivers to deliver packages to Amazon customers.

Dave Clark, senior vice president of Amazon’s Worldwide Operations, commented:

We received overwhelming interest from tens of thousands of individuals who applied to be part of the Delivery Service Partner program, including many employees. We’ve heard from associates that they want to participate in the program but struggled with the transition. Now we have a path for those associates with an appetite for opportunities to own their own businesses.

Shares of Amazon were trading at $1,829.76 just after Monday’s opening bell. The 52-week range is $1,307.00 to $2,050.50, and the consensus price target is $2,170.21.


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