Published: Tue, May 14, 2019
Finance | By Loren Pratt

Amazon offers employees $10,000 to quit, launch delivery business

Amazon offers employees $10,000 to quit, launch delivery business

Amazon said on Monday that it would pay the equivalent of three months of their most recent gross salaries - as much as $10,000 - if employees want to leave the company and form a new USA delivery start-up.

"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", the company wrote in a press release.

TIME reports that the program started a year ago and it's part of the company's plan to launch an independent Amazon delivery business. According to the announcement, Amazon developed the new arm of the program to help employees who are interested in the Delivery Service Partner program but need assistance during the transition process.

The program was announced just two weeks after Amazon announced it would end its standard two-day shipping for Prime members, in order to lower it to next-day shipping.

Amazon has been trying to gear up an independent delivery service to handle packages now going to companies such as UPS and FedEx as well as the Postal Service. Contractors that participate are able to lease blue vans with the Amazon smile logo stamped on the side.

The program's expansion is part of the company's plan to control more of its deliveries on its own, rather than rely on UPS, the post office and other carriers. Whole Foods employees are not eligible to receive the new incentives.

Amazon said it would offer access to the company's delivery technology, training, and discounts on assets and services, including Amazon-branded vans and uniforms and insurance.

Still, Schlactus also said there's never been a better time to be a delivery driver or operate a delivery business.

The AP spoke to Milton Collier, who opened one such business in Atlanta, GA, eight months ago. "We expect the efficiency savings will be re-invested in new services for customers, where new jobs will continue to be created".

Collier says his business is already preparing for the one-day shipping goal by looking for more workers.

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