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HomeAUTOMOTIVEAmazon Orders 20,000 Mercedes-Benz Vans for a New Delivery Service

Amazon Orders 20,000 Mercedes-Benz Vans for a New Delivery Service

Amazon (NASDAQ: AMZN) is accelerating its delivery partnership program with local small businesses after purchasing 20,000 Mercedes-Benz Sprinter pickups.

When Amazon announced its delivery service partner program a little over two months ago, the goal was to bring in a local small delivery business. With the purchase of the 20,000 vans, Amazon is speeding up the process as it appears to control the delivery of the products it sells in the “Last Mile.”

The best way to make this happen is to use local Small Businesses familiar with your environment.

When the program was first announced, Dave Clark, Amazon’s senior vice president of worldwide operations, noted the company’s intent to provide opportunities for small businesses.

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Clark said, “As we evaluated how to support our growth, we went back to our roots to share the opportunity with Small and Medium Businesses. Let’s empower new small businesses to take advantage of the growing opportunity in e-commerce package delivery.

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For its part, Daimler AG, the maker of the Mercedes-Benz Sprinter, is making delivery of the trucks to Amazon a priority. Daimler says that the first Sprinter of a new production was delivered to Amazon.

The trucks were manufactured in North Charleston, South Carolina. The purchase of the 20,000 vans will make Amazon the largest Van Sprinter customer in the world.

Initially, Amazon was looking to use businesses that already have their own fleet of 20 to 40 vehicles or allow entrepreneurs to create delivery companies by buying new vans.

The new plan will farm Sprinter trucks to fleet management companies. They, in turn, will buy and lease them to local small businesses to provide last-mile delivery.

Amazon will also help small businesses by providing access to delivery technology, uniforms, insurance, fuel, and more.

The cost of the last mile delivery

Last mile delivery is the final step in the process, starting on the warehouse shelves and ending at the buyer’s home or office. According to a Business Insider report, the last mile problem is riddled with inefficiencies and accounts for 53% of the total cost of shipping.

While many have seen this purchase from Amazon as a way to compete with FedEx, UPS, and the USPS, the goal seems to be to make the last mile as efficient as possible and reduce the cost of this part of the delivery process.

For small businesses, this will mean a new opportunity to be part of an organization that is now the second trillion dollar company in the United States.

Video:Amazon Orders 20,000 Mercedes-Benz Vans for a New Delivery Service

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