Amazon Wants to Promote Small Package Delivery Fleets

Amazon wants to help you start your own delivery business

Both of these things are great for Amazon stock.

Recently, the company has come under fire from President Donald Trump who tweeted that Amazon should pay the U.S. Postal Service more for shipping its packages.

In response, Amazon is rolling out what amounts to a turnkey delivery fleet opportunity for entrepreneurs: Amazon Delivery Service Partners.

"You could see this coming from Amazon for a long time".

The strategy appears to be Amazon's latest attempt to solve its so-called "last-mile" problem with ensuring that everything customers order online gets to their front doors.

So far, that hasn't been enough ensure Prime customers get their packages in time. The Amazon Delivery Service Partners program is created to help independent contractors operate up to 40 vehicles delivering products to Amazon customers. So far the threat hasn't hurt Amazon stock, but there is the worry that it might. The Delivery Service Partners program not only lets the e-commerce giant better control costs of delivery, but it could also launch hundreds of small businesses, Amazon said in its announcement.

The offering provides technology and operational support to individuals with little to no logistics experience the opportunity to run their own delivery business. It's also setting aside $1 million to specifically recruit and help military veterans become partners.

Amazon estimates it will cost $10,000 to start a business operating 40 vehicles, with an earning potential of up to $300,000 in profit each year.

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Amazon (NASDAQ:AMZN) is introducing a new delivery system that will challenge UPS (NYSE:UPS) and FedEx (NYSE:FDX).

Amazon revealed that the qualified entrepreneurs can easily start their businesses for as low as $10,000.

More: Amazon is testing its own delivery service.

Amazon is also taking a big leap in the delivery business. However, company is making all efforts to resolve the issues related to the transportation or delivery of goods. (NYSE:UPS) and FedEx Corporation (NYSE:FDX).

This new last-mile delivery program is in addition to Amazon Flex, a delivery program in more than 50 US cities that operates similarly to Uber or Lyft, with temporary employees delivering parcels from their own vehicles for $18 to $25 an hour.

If successful, that will pay off with greater control over delivery costs.

Your Amazon packages, which usually show up in a UPS truck, an unmarked vehicle or in the hands of a mail carrier, may soon be delivered from an Amazon van.

It's all part of ensuring Amazon Prime membership continues to be an important driver of Amazon revenue and Amazon stock.

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