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00:00:00
>> E-commerce giant Amazon rolling out a new plan to hook entrepreneurs into the business of getting packages to your doorstop. It's an answer to one of retail's biggest challenges going door-to-door with only a few parcels is expensive but customers expect the convenience. I'm Reuter's Jane Lanhee Lee in Seattle, and this is the van Amazon says it's solution to the last mile of delivery.
00:00:25
The company says these vans can be leased to entrepreneurs in the US who are looking to start up their own delivery business and they can start those businesses with as little as $10,000.>> So when you think about these businesses, they have very little startup cost because we've used our scale to enable small business by negotiating grade list rates with the kind of branded vehicles you're seeing.
00:00:45
We'll expect people to be a 20 to 40 vehicle fleet, up to a 100 drivers. A 40-vehicle fleet as much as $300,000 a year in profits.>> Amazon's new program will likely create more competition for the likes of UPS and FexEx as entrepreneurs like Olaoluwa Abimbola get into it.
00:01:03
He was previously a flex driver for Amazon, using his own car to deliver packages, five months ago he signed up as part of a group that's testing the model.>> This old van is much more of a step by step process, so there is no, I have to look for half a million like that.
00:01:22
And the program is at it's infancy, so there's a lot of support from Amazon from there.>> Amazon rivals like US grocery chain Kroger and retail giant Walmart are also experimenting with different delivery models that make economic sense, including curb-side pick up. Amazon says it's helped small businesses get started through its Marketplace platform for years and now it's looking to bring them in on the last mile.