Amazon entered the logistics market in the United States in 2018. As it turns out, also in Europe it plans to become partially independent from the leading courier companies that perform deliveries for the e-giant. The Internet retailer will focus on small-scale subcontractors.
According to the German media, Amazon wants to take over the last mile deliveries in Hann, Münden and Bad Hersfeld in the north of Hessen. As the company explains, this is linked to the opening of a new distribution centre in Knüllwald directly off the A7 motorway and the growing market demand.
In addition to companies such as DHL, DPD, Hermes and UPS, which have previously delivered to customers in the city and surrounding areas, smaller sub-contractors will also do the same for Amazon. In total 6 companies will deliver for the e-retailer. In the long run, 10,000 parcels per day will be sent from the centre of Knüllwald.
Every day, 100 vehicles deliver parcels from the Amazon centre in Knüllwald to customers. The drivers are employed by six independent service providers from the region,” says the spokeswoman for Amazon, quoted by the daily Hessische Niedersächsische Allgemeine Zeitung.
Subcontractor drivers’ routes are planned using an algorithm provided by Amazon that calculates delivery routes based on daily quantities and delivery addresses.
The company needs more capacity to meet the growing demand for same-day or next-day deliveries. Amazon sees its own distribution as a complement to the existing distribution through third parties such as DHL, DPD, etc.
Amazon partners in the United States
The situation is slightly different in the United States, where Amazon has been building a network of transport companies. There, the online retailer created the Amazon Logistics program, under which it acquires not employees or carriers but partners who deliver for the company in cities. The e-commerce giant helps them start a business. Amazon announced that it will invest $1 million in a special start-up fund for its partners to develop their business.