Watch about how the deal works in the video below.
Video credit: CBS Los Angeles
Amazon has just come up with an interesting strategy to improve its delivery times: ask their employees to quit in exchange for startup money that will be used to put up a delivery business for the company.
According to the Associated Press, the announcement was made by Amazon on Monday as it sought to achieve one-day delivery for its Prime members, compared to the current two-day delivery time.
The AP states:
Amazon says it will cover up to $10,000 in startup costs for employees who are accepted into the program and leave their jobs. The company says it will also pay them three months’ worth of their salary.
ADVERTISEMENT The offer is open to most part-time and full-time Amazon employees, including warehouse workers who pack and ship orders. Whole Foods employees are not eligible to receive the new incentives.
The new offer comes as Amazon tries to limit its reliance on others to deliver its packages. It already started last year when the company allowed people to “apply to launch an independent Amazon delivery business and provided $10,000 in reimbursements to military veterans,” reported AP. This resulted in the creation of more than 200 businesses that now deliver for Amazon. The most recent announcement expands on last year’s program.
Milton Collier was one person who took advantage of Amazon’s offer eight months ago to open up a delivery business in Atlanta, GA. His company now employs 120 people with 50 delivery vans in its fleet. His company manages to make around 200 deliveries a day and Collier is even hiring more people to meet the one-day shipping goal, adding that his company is “ready.”
Additionally, Amazon is also planning to partially automate its boxing process. Installing these machines will result in 24 jobs in each warehouse being cut.
Reuters reported: “The company started adding technology to a handful of warehouses in recent years, which scans goods coming down a conveyor belt and envelopes them seconds later in boxes custom-built for each item, two people who worked on the project told Reuters.”
Although each machine will cost roughly $1 million, Amazon expects to recoup those costs within two years.
A spokeswoman told Reuters in a statement, “We are piloting this new technology with the goal of increasing safety, speeding up delivery times and adding efficiency across our network. We expect the efficiency savings will be re-invested in new services for customers, where new jobs will continue to be created.”
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