Will Local Coffee Shops and Florists Help Amazon Expand Its Last-Mile Capacity?

Amazon.com is looking to partner with local businesses like coffee shops, florists and auto parts stores to make deliveries in their communities.

The retail, logistics and technology giant’s Amazon Hub program is currently recruiting small businesses in 23 states – Alabama, Alaska, Arkansas, California, Florida, Iowa, Indiana, Illinois, Massachusetts, Minnesota, New Jersey, New York, North Carolina, North Dakota, Ohio, South Dakota, and Washington, reports Axios. The company has set a goal of having 2,500 new small-business drivers by the end of 2023.

Vox reported in May 2022 that Amazon was quietly recruiting local businesses in rural areas to deliver its orders in Alabama, Nebraska and Mississippi. Participating companies were asked to make deliveries within a 10-mile radius.

Based on Axios’ reporting, Amazon thinks its Hub program will also work in more densely populated areas, targeting 20 cities, including Boston, New York, Los Angeles and Seattle, as it rolls out the service.

Participating businesses will be asked to deliver between 20 and 50 packages daily and will be paid for each one dropped off at its proper destination. Deliveries are made seven days a week with service suspended on major federal holidays.

Businesses looking to participate in the program must be available to receive packages daily and have a secure area to store them before they go out for delivery. They’ll need someone available daily to make the deliveries and be appropriately insured. Amazon doesn’t require prior delivery experience for businesses looking to participate.

Amazon has yet to publicly provide details on how much mom-and-pop businesses can earn making deliveries for it. Axios estimates that Amazon will pay $2.50 per package based on an annual income of $27,000. Participating businesses receive weekly direct deposits for the packages they deliver.

Beryl Tomay, vice president of Amazon last-mile delivery and technology, told Axios the new program will help “create opportunities for delivery partners interested in growing a business … and supplementing their income.”

Two businesses in Alabama, Herrington’s The Florist in Brewton and Greenville Auto Parts in Greenville, have become delivery partners for Amazon and sing its praises. The owners credit their participation in Amazon’s program with generating income to upgrade their existing businesses in videos posted on the Amazon Hub site.