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Amazon Wants Employees to Start Delivery Businesses

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May. 16 2019, Published 2:12 p.m. ET

Amazon asking employees to leave the company

Amazon (AMZN) is encouraging employees to leave the company if they wish to and start their own business of delivering packages. The online retailer is offering $10,000 as well as three months’ pay to employees who want to leave the company and form new start-ups with Amazon. The announcement is in line with the company’s efforts to open new delivery options, empowering and encouraging employees to become business owners.

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Last year, Amazon, through its Delivery Service Partners program started in June 2018, has helped to create more than 200 new small businesses and plans to add hundreds more new businesses in the near term. The employees turned business owners can put the Amazon Prime logo on delivery vans and partner with FedEx and UPS to deliver packages. Amazon’s program is available in the US, UK, and Spain.

Amazon’s emphasis on expanding delivery

Amazon has been focusing on expanding its delivery services amid slowing revenue growth. Notably, Amazon’s revenue increased by 16.9% YoY in Q1 2019, the slowest growth since the first quarter of 2015.

Amazon is, therefore, focusing on reducing the Prime shipping to free one-day, instead of free two-day shipping on minimum orders of at least $35. Amazon has plans to spend $800 million in the second quarter to make the shipping faster. In the past, Amazon has taken control of a fleet of delivery vans that were given to the contract drivers to speed up the delivery process. Amazon has also been building Boeing 767 cargo planes to gain some control over shipping.

On Tuesday, e-commerce rival Walmart announced free next-day delivery on its most popular items on orders of $35 or more, with no membership fee.

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