Amazon Ends Contracts with Some Regional Couriers
Amazon is ending relationships with some regional delivery partners, according to a story published by Bloomberg.
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In some markets, regional couriers played a vital role as they allowed Amazon to expand two-day and next day deliveries without having its logistics network entirely in place.
With the growth of Amazon’s own logistics network, it was just a matter of time before Amazon would start ending contract courier relationships.
Non-descript white vans are replacing Amazon-branded delivery vehicles in many major markets at a rapid pace.
Last year, FedEx saw the writing on the wall when it did not renew its contract with Amazon and decided to focus on a future without the giant online retailer.
Unfortunately, for some of the regional couriers, losing the Amazon contract is a massive blow as they often represented a large part of their business.
Three contract couriers mentioned in the Bloomberg story all notified state officials they are cutting jobs as a result of losing the Amazon business.
The three companies alone are putting over 1,300 drivers out of work. Bear Down Logistics, one of the courier contractors mentioned in the Bloomberg story, may have closed its doors entirely.
Amazon Changes Not Surprising
Now that Amazon is past the busy holiday season, it should not be a surprise that Amazon is making changes to the delivery network. If there ever is a time to tweak the network, it is now so that the company can be ready for busier times later in the year.
Amazon customers expect a consistent delivery experience, and the company appears to be using performance issues as an excuse to rid itself of underperforming delivery partners, especially in markets where its own logistics network can handle the delivery load.
“We have a responsibility to our customers and the communities where we operate to ensure these partners meet our high standards for things like safety and working conditions. Occasionally we need to end a relationship with a partner and when this happens we are committed to helping the impacted employees find opportunities with other delivery service partners or to learn more about the thousands of available roles at Amazon delivery stations and fulfillment centers.”
Amazon statement to Bloomberg
This news should again be a warning to the remaining independent contract delivery partners as they all should have an exit strategy for when Amazon bids farewell to them.
The Amazon logistics network is growing in leaps and bounds, and there will be a time when the company will no longer need outside services to handle its delivery load. That day may come sooner than later.
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Richard Meldner
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.