It’s been theorized for awhile that Amazon is trying to replace the Flex program. Delivery partner companies, AKA White Vans, already take much of the work that would otherwise go to Flex drivers. These companies have such a high turnover rate that most Flex drivers aren’t worried about being replaced by them.
However Amazon has recently announced a new kind of Delivery Service Partner option for start-ups.
Starting at an initial $10,000 investment, entrepreneurs can partner with Amazon to become apart of this new and exciting logistics opportunity. Amazon has negotiated discounts for this program, including lower rates on insurance, fuel and leases for Amazon branded vans. With such great discounts and small barrier of entry the numbers are enticing.
Very tempting indeed. This is a great opportunity for entrepreneurs and anyone looking to start a fleet for a logistics business. Even if it will replace me, as a Flex driver, I still have to appreciate the program.
It won’t be a cake walk:
Amazon has provided all the tools and support to start your own DSP, but it’s still going to be a lot of work. Owners will need to run the business aspect. Including training, hiring, managing, interviewing, etc. Thankfully, Amazon has made it easier than ever to get started. They’re even offering a training program for interested parties.
Will Flex Drivers become Obsolete?
It’s entirely possible. If the new Amazon sponsored DSP’s can pick up all the slack that Flex drivers currently do for White Vans. At this point i’m not worried. I fail to see how these companies will retain drivers any better than the White Vans. I think turnover in drivers will still be just as high. As a result, Amazon Flex will still have a place.
Read more about this program at:
http://money.cnn.com/2018/06/28/technology/amazon-delivery-partners/index.html
https://d3a8hw3k243rpe.cloudfront.net/static-assets/Download_Brochure.pdf