‘Driver-delivery’ boys to speed up Amazon service

The online retailer known for low prices and razorthin profit margins is apparently looking to speed up delivery times and tamp down its growing multi billion dollar logistics bill. The move, which has not been announced publicly, is the latest sign that the world’s biggest e-commerce company wants to control more of its own deliveries. Media reports have said the company plans to lease its own fleet of jets, and CEO Jeff Bezos eventually wants to use drones to get packages to customers. 

Amazon outlined details of its latest plan over the last few weeks in an email to contract drivers who deliver parcels for Amazon Flex, a program launched last year to handle speedy deliveries of common household goods to customers using Prime Now, a mobile app that comes with Amazon’s popular US$99-a-year Prime membership. They are not Amazon employees. 

If the gambit works, industry analysts said it could help Amazon contain its shipping costs, which grew more than 18 percent to $11.5 billion last year. It might also create a logistics network to compete with United Parcel Service Inc, FedEx Corp and the patchwork of local carriers which currently deliver Amazon packages. 

An Amazon spokeswoman confirmed on Wednesday that Flex drivers in Texas are already delivering Amazon.com packages and not just Prime Now orders. The Seattle-based company did not go into details of its plans, but said it will “explore new ways to provide customers with faster service and delivery partners with more opportunities.” 

Routing more deliveries through its own network of contract drivers would give Amazon more control over its supply chain and cut costs. The move could be especially cost-effective in out-of-theway areas where smaller, regional couriers deliver parcels to Amazon customers.