Amazon to Take On UPS, FedEx With New Delivery Vans
Amazon (NASDAQ:AMZN) is introducing a new delivery system that will challenge UPS (NYSE:UPS) and FedEx (NYSE:FDX).
Source: Amazon
This new system will have the company offering to help set up small delivery businesses. These businesses will then be responsible for delivering the company’s packages to customers, rather than having another service handle it.
Amazon says that its help will bring a slew of benefits to those looking to start their own delivery businesses. This includes offering discounts on “Amazon-branded vehicles customized for delivery, branded uniforms, fuel, comprehensive insurance coverage, and more.”
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Amazon also notes that this offer will have startup costs as low as $10,000. To go along with this, the company has a sponsorship for veterans that are looking to start up one of these delivery businesses. This has it offering to reimburse $10,000 to candidates that build their businesses.
According to Amazon, there’s real potential here for individuals that are looking to make money with a delivery business. It claims that these people could make as much as $300,000 in yearly profits and have up to 40 delivery vans under their control.
Amazon’s effort to build a delivery service its likely a move to protect itself from potential problems at UPS or FedEx. The company has said in the past that issues at either of these companies would ultimately hurt its own business due to how much it relies on them for deliveries.
AMZN stock was up 1%, UPS stock was down 2% and FDX stock was down 2% as of Thursday morning.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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