"He sank $75,000 into the business and earned more than $200,000 in the first year. An Air Force veteran, Clay, 50, felt like he'd joined an elite unit. The feeling didn't last. Before long, rising insurance and other costs began eating into his profit. One of Clay's drivers was badly bitten by a dog and went on workers compensation for a year, while his annual vehicle insurance rates soared fivefold to almost $500,000."
"I earned significantly less as I got more seasoned, which is the most upside-down business I've ever heard of, Clay said. Amazon wants a bunch of pawns and they keep a bunch of extra pawns on the bench to replace anyone who leaves. Clay said he rejected an offer to sign an exit contract with Amazon that would have paid him $75,000, but ban him from speaking publicly about the program."
"Amazon.com Inc. launched its Delivery Service Partner program in 2018, offering aspiring entrepreneurs an opportunity to run their own businesses. The world's biggest online retailer pledged to use its negotiating clout to help them lease vans and hire drivers. All they needed, the company said at the time, was can-do spirit and as little as $10,000 up front to earn as much as $300,000 (now $400,000) in yearly profit."
Jake Clay started an Amazon delivery firm in Odessa, Texas in 2022, investing $75,000 and earning over $200,000 in the first year. Rising insurance, vehicle maintenance and workers-compensation costs later eroded profits, including a fivefold increase in annual vehicle insurance to nearly $500,000 and a driver injured by a dog. Clay ultimately quit after concluding the business was no longer worth running. Amazon launched its Delivery Service Partner program in 2018, promising low upfront costs and strong profits while helping partners lease vans and hire drivers. Many owners report dwindling profits amid higher operating costs and tighter Amazon performance metrics.
Read at www.mercurynews.com
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