Recent trucking news reports that Amazon has terminated delivery service contracts with seven small firms, despite efforts to grow its newly formed partner program. In 2018, Amazon made the move to partner with companies in an effort to rival its competitors, UPS and FedEx, in the race for last-mile delivery services. Despite a large increase in orders to fulfill during COVID 19, the decision to cut ties with companies raises some questions about Amazon’s ability to deliver the goods. This new development may result in opportunities for other companies or independent drivers in the future.
The Effects of Amazon’s Decision
Amazon’s attempts to corner the market on all of its primary service functions is well known. However, as small firms were hired to provide drivers for Amazon-branded cargo vans, there has been considerable criticism as to how well the program works. Customer complaints are centered around uneven delivery capabilities and poor quality of service.
This also leaves Amazon with a big question about how to maintain the speed and volume of deliveries with a decreased workforce.
The Possibility for Opportunity
The possibility for other companies and individuals to fill this void is two-fold:
- New business opportunities: Amazon makes a delivery company start up easy and relatively inexpensive. New business means the need for drivers.
- Trained drivers: Companies who start new delivery services could corner an Amazon delivery need by employing experienced drivers who have the skills to make on time and precise deliveries.
Insurance Solutions for Trucking Operations
Truckers are in high demand due to delivery needs arising from the pandemic and this may be another way to fulfill a unique demand at this time.
Companies looking to expand into delivery operations can benefit from comprehensive coverage from Rev Insurance that meets the specific needs of their operations. Call for more information or to get a quote at 1(800) 347-5373.
