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Amazon Partner Inpax Lays Off About 600 After Amazon Ends Relationship

FreightWaves

Amazon.com, Inc. (NASDAQ: AMZN) can giveth, and it can taketh away. 

Atlanta-based Inpax Final Mile Delivery Inc., an Amazon delivery service provider and a last-mile delivery company in 11 markets, felt the brunt of the latter option earlier this week when Seattle-based Amazon cut ties with it. Bereft of a chunk of its business, Atlanta-based Inpax swung the axe. It notified the state of Georgia that it would lay off 162 workers that operate out of two Amazon facilities in metro Atlanta, according to a published report. Most of the layoffs are among Inpax drivers.

Other Inpax markets were affected as well. In Charlotte and Durham, North Carolina, Inpax is laying off 199 employees, according to a report. Inpax is also laying off 200 and 64 employees in Ohio and Texas, respectively, as a result of the lost business, according to reports. Inpax also provides delivery services for FedEx Corp. (NYSE: FDX), UPS Inc. (NYSE: UPS) and the U.S. Postal Service.

In a statement, Amazon confirmed that it ended its relationship with Inpax. It did not give a specific reason for the separation, saying that it evaluates "our partnerships to ensure they are meeting our high bar for safety and customer experience." Inpax drivers will have an opportunity to deliver Amazon packages with other providers, according to the statement. 

Amazon has relationships with hundreds of delivery service providers nationwide. The providers keep drivers on their payrolls, and are allowed to work for other companies besides Amazon.

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