FedEx Ends Amazon Ground Delivery Contract: Entrepreneurs, Assemble!

What if we told you that you could lead a team of Amazon employees, all from the comfort of your familiar home city? Thanks to the latest development in the eCommerce giant’s life, it turns out you can.

The Amazon FedEx contract is set to end at the end of August, with no renewal in sight. In fact, both powerhouse companies have embraced this separation, with plans to capitalize on emerging opportunities.

Now, Amazon is planning to build a fully independent ground delivery fleet of private entrepreneurs managing teams. Rather than descaling the already massive delivery driver network, FedEx is instead opting to chase opportunities with other retailers.

Savvy entrepreneurs with a knack for riding lucrative trends and managing driving teams can capitalize on the Amazon FedEx contract ending through new opportunities in both companies.

A New Stretch of the Road After the Amazon FedEx Contract Ends

With FedEx declining to renew Amazon’s delivery contract, the eCommerce giant was forced to find another solution. Rather than signing with a lesser delivery service, Amazon is looking on the bright side by using this as an opportunity to build its own independent distribution network. Aptly named the Amazon Delivery Services Partner program, this service was announced back in June. 

But this pivotal shift doesn’t just change things for the corporation. It also opens up new doors for entrepreneurs seeking a lucrative business opportunity where business will never end. Specifically, the doors to shiny new Amazon trucks.

What Is The Amazon Delivery Service Partner Program?

The Amazon Delivery Service Partner Program entrusts you with delivering Amazon packages to a predetermined route. Using purchased (but discounted) vans, you would be responsible for supervising a team of 20-40 drivers, who would deliver packages along this route.

But Amazon won’t quite leave you to your own devices. As an essential part of Amazon’s delivery network, you would have access to the eCommerce empire’s massive supply of resources, including:

  • 20-40 vans
  • Delivery equipment
  • Insurance policies
  • Training
  • Top-notch support

And, as an Amazon delivery company owner, you would also be able to build your own team with a rewarding and motivational culture!

Far from simply outsourcing, this opportunity carries huge potential. According to Amazon, drivers have the unique opportunity to earn close to $5 million in revenue.

But this isn’t the only move that Amazon has made to start off the next decade on the right foot. 

Announced back in June, Amazon is taking its aspirations for a seamless delivery process to the sky with its own air fleet as well. With its flagship Amazon Prime membership offering two-day delivery to a whopping 100 million people, this is the first step to taking this promise nationwide. And it may be crucial in helping Amazon to expedite this down to a one-day time window, too.

In addition to buying a fleet of planes, Amazon has also jumped on streamlining deliveries once products hit the ground. By building airport-based package sorting hubs, Amazon can effectively and proactively begin pushing products in the right direction.

Who knows— delivery drones may become commonplace over the next few years, too!

So, How Does FedEx Feel About Terminating This Relationship?

They’re not as upset about the Amazon FedEx contract ending as you might think. FedEx actually initiated it with a strategy in mind.

Rather than looking at this terminated relationship as a missed opportunity, FedEx is taking it in stride by instead attacking other new opportunities. While FedEx once comprised a large share of Amazon’s distribution network, Amazon itself only accounted for 1.3% of FedEx’s 2018 revenue, according to Bloomberg.

With this change comes the opportunity for several new profit centers.

Amazon owns a massive slice of the eCommerce pie. But as eCommerce becomes increasingly important in the retail world, other retailers have adapted to this new model. 

Now, Walmart, Target, Best Buy and other previously brick-and-mortar retailers have prioritized eCommerce sales. Making eCommerce transactions as simple and convenient as possible is an important step for them in stepping up to Amazon.

That’s where FedEx said it fits into the equation.

“This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do,” FedEx commented.

FedEx recently upped the ante by delivering 7 days a week, including Sundays. And while that doesn’t quite match Amazon’s legendary two-day delivery window, it will help other retailers to hold a fighting chance. 

By taking major steps toward the best, streamlined process, FedEx is finding new creative ways to generate more business from other retailers.

Becoming a FedEx Delivery Driver

Like the new opportunity at Amazon, FedEx routes are also a fertile ground for savvy entrepreneurs.

FedEx routes work in a very similar fashion. By purchasing a route and equipment, as well as hiring a team, you can be paid by FedEx to deliver packages in a certain area. As FedEx forges exclusive relationship with Amazon’s top brick-and-mortar competitors, they’ll need dedicated drivers.

Getting the Capital to Drive Success With Amazon and FedEx

Both Amazon and FedEx are fast-growing companies invested in the future of eCommerce. So, how can you help drive their success?

With Amazon’s Delivery Service Partner start-up costs as low as $10K, this option is fully within your grasp. And right off the bat, your company could be generating close to $5 million in revenue.

But why settle for what you earn off the bat when you could be doubling (or tripling) your revenue?

Grow Your Amazon Delivery Company With National!

National is here to help you realize your full potential!

If you’re looking to add some new drivers and vans to your Amazon delivery business, we can help you access the capital to make it happen! Improve on your operation by using capital to:

  • Maintain and replace older equipment like vans, dollies and more
  • Pay delivery drivers competitive wages that keep your team happy
  • Add new members to your all-star team 
  • Purchase additional routes

At National, we make the funding process as simple as possible! 

First, tell us everything we need to know about your business by filling out our application. Before you know it, one of our Business Financing Advisors will reach out to get more information about your goals. Through our marketplace of over 75 lenders, we’ll let you know about the best offers available! 

Once you choose the best financing option for your business, we can have the funds deposited in as little as 24 hours.

Fill out our 60-second application to get started capitalizing on the incredible eCommerce potential today!

National Business Capital & Services is the #1 FinTech marketplace offering small business financing and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

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About the Author, Matt Carrigan
Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!