Amazon is taking on Australia Post and Toll, who yesterday recruited the Prime Minister Anthony Albanese to launch a new pure electric dual cab Utes fleet.
The big US online retailer who is experiencing record growth in Australia is recruiting a fleet of contractors to launch a Delivery Service Partner program across three capital cities in an effort to deliver the last mile where Australia Post has dominated.
Currently Australia Post has more than 80 per cent market share and Amazon believes that they can deliver cheaper and more efficiently than Australia Post.
According to the Australian, Amazon is aiming to succeed where other foreign logistics companies have largely failed, making commercially viable deliveries across much of Australia.
Already available in 19 countries, Amazon recently expanded its free one-day delivery service for Prime members to key regional areas, dominated by Express Post.
Now Amazon is recruiting its own contractors to “speed up deliveries” with the business prepared to invest up to $500m in its last mile delivery network.
The Delivery Service Partner program – which will initially be available in Sydney, Melbourne and Brisbane – involves signing up small businesses, who typically operate a fleet of 20 to 40 vehicles, which will be co-branded with Amazon’s ‘smile’ logo.
Amazon Australia’s General Manager of Delivery and Supply Chain, Anthony Perizzolo, said encouraging more people to start their own delivery business, would create “hundreds of permanent jobs for delivery drivers”.
Amazon vice president of transport Beryl Tomay, -who oversees the company’s last mile deliveries – said the program aimed to inject more entrepreneurship in the logistics market.
“This program is all about empowering Amazon entrepreneurs to start their own delivery business, even if they have no logistics experience or very little logistics experience,” Ms Tomay said.
“What we’re able to provide is Amazon’s expertise within logistics, infrastructure support training technology. So, these owners can go and hire and retain amazing teams, run their daily operations, manage their fleet, so that they can grow their own business and invest in their communities.”
The start-up cost to join the program is $30,000 and covers services including fleet and payroll management as well as insurance.
“We have a ton of technology that will aid them in running their own business. For example, their drivers get technology that has mapping functionality and routing functionality,” Ms Tomay said.
“We provide them with the services that they will need through … partnerships that we’ve created. We’re pretty proud of how low the barrier is and the relative low cost of the start-up investment that they have to make.”
The Delivery Service Partner program complements Amazon’s Flex scheme, which taps into the gig economy but instead of being paid per parcel delivery, drivers are paid hourly.
“We’re very much invested in continuing to speed up deliveries for our customers,” Ms Tomay said.
“Our last mile network plays a big role in that, and it’s quite diverse. Our Delivery Service Partner program will enable us to continue these investments for our customers and improving their delivery experience.”