![]() ![]() And it worked: Less than a year after first advertising for the program in 2018, one-day delivery made its first appearance in a 2019 earnings call, the beginning of a ramp-up in delivery speed that continued until the pandemic began in March 2020. The company wanted to move faster than the two-day Prime standard, and subcontractors made delivery both cheaper and more flexible. The new DSP program was part of Amazon’s efforts to solve its problems with last-mile delivery. It was like a Blue Apron meal kit, but for your own small business. Once accepted into the program, Amazon would teach how to hire drivers, lease vans, pay taxes and get insurance. The company would take applications from individuals - not groups - who were willing to start their own LLCs. In June 2018, Amazon began advertising that almost anyone could become an entrepreneur, so long as they had $10,000 in cash. Of the people interviewed for this story, only one of them spoke favorably of the program. While some of the DSP owners interviewed for this story said they’re desperate to dissolve their companies, they told Protocol that they haven’t closed up shop because they are afraid of the tens of thousands of dollars in fees they might incur when they do.Īside from people who run successful DSPs or have since left the DSP program, everyone who currently owns or works for a DSP was granted anonymity for this story because they are afraid Amazon will retaliate. After more than a year working for the company, some of these Amazon delivery contractors - including a DSP owner who has filed a lawsuit against Amazon as well as the veteran who launched his business after finishing military service - are or were dependent on federal paycheck protection program loans to maintain cash flow and have grappled with profits below or at the low end of Amazon’s advertised range (below $100,000). Only for the veteran and some other DSP owners interviewed for this story, that isn’t all they got in return. Accept none of the liability, taxes or responsibility for worker’s comp.Īnd in return, each individual LLC owner gets their own ready-made, money-churning delivery business supplied with Amazon’s seemingly boundless demand. Take the algorithmic calculus that made two-day shipping possible and set strict rules for how quickly and precisely every delivery must be made. ![]() ![]() Rather than give subcontractors a geographical territory and have them just go at it (a la FedEx), provide them with specific routes. Take the delivery model proven successful by FedEx - subcontracted logistics companies like franchises - and Amazonify it. On its face, Amazon’s DSP program appears to be a smart business proposition for everyone involved. ![]()
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