Amazon is cutting ties with small delivery partners in 5 states around the US in an effort to remove partners not meeting its standards, Bloomberg report.
The delivery partners affected include Bear Down Logistics, an Illinois based company that despite its rapid expansion over the past two years, is no longer a delivery partner for Amazon. Delivery Force, a Washington state based firm with drivers in Seattle and other cities, and RCX Logistics, Kansas-based delivery firm with drivers in Texas, Alabama and Florida.
“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 spokeswoman
In 2018 Amazon started a program where entrepreneurs were able to build their own delivery business by leasing vans, taking out startup loans and hiring drivers to deliver parcels to its customers. Many businesses have emerged from this, aiding Amazon’s efforts in increasing their delivery capacity and decreasing cost. It’s also good to note that Amazon have greater negotiating power small operators in comparison to larger delivery partners and the unfortunate reality that smaller Amazon delivery partners could be cut off at any moment.
It should also be noted however, that if delivery firms take safety as seriously as the logistics they should have less to worry about. The balance of safety, speed of service and cost is crucial, having a cost effective way to provide a fast delivery service is amazing for marketplaces, consumers and sellers but if the safety of delivery drivers were compromised this could cause issues of trust in the future. For effective logistics, safety is paramount. It’s easy to think about consumer needs without considering how safety of employees is a major part of that too.