Amazon wants to foster small independent delivery fleets

An Amazon Prime van sits on a hill overlooking downtown Seattle during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, at an event space in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

SEATTLE (Reuters) - Amazon.com Inc <AMZN.O> on Wednesday said it would offer incentives to entice entrepreneurs to set up their own small package-delivery businesses as part of Amazon's latest effort to solve the challenge of getting goods the last mile to customer doorsteps.

At a press event in Seattle, Amazon unveiled one of the dark gray Prime-logoed vans that it wants to lease to delivery businesses on what it says are attractive terms. It also said it would provide uniforms, fueling plans and insurance programs for fleet operators and even offer classes on tax, payroll and other small-business challenges.

An Amazon Prime van during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, at an event space in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

The new program promises more competition for delivery companies like United Parcel Service Inc <UPS.N> and FedEx Corp <FDX.N>.

Amazon says qualified entrepreneurs could start businesses with as little as $10,000, although that does not include the cost of hiring drivers. "A 40-vehicle fleet could earn as much as $300,000 a year in profits," said Dave Clark, Amazon's senior vice president of worldwide operations.

Clark said he would expect to see operators with 20 to 40 vans employ 100 drivers. Amazon did not offer any details on the incentives or say whether it would pay per delivery, per mile driven or per month.

Mt. Rainier can be seen through the window of an Amazon Prime van during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

The branded vans can only be used for Amazon deliveries, an Amazon spokeswoman said. Last-mile delivery is among the retail industry's biggest challenges as customers increasingly expect quick and cheap delivery of almost anything ordered online.

Amazon rivals like U.S. grocery chain Kroger Co <KR.N> and retail giant Walmart Inc <WMT.N> are also experimenting with different delivery models.

Earlier this year, Reuters reported that Walmart had ended grocery delivery partnerships with ride-hailing services Uber and Lyft. Walmart has also offered to pay its store employees to complete deliveries on their way home from work. Walmart is now doing grocery delivery with DoorDash and Postmates.

Dave Clark, Amazon's senior vice president of worldwide operations, speaks during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Meanwhile, Amazon has for nearly three years had its Flex program where drivers can get paid for deliveries using their personal cars. That program will continue, Clark said, but only solves part of the problem.

“Flex is all about leveraging available capacity," said Clark. Salting the landscape with new delivery operators offers scale.

"We looked at our history with small business" on the Amazon marketplace platform, Clark said, "and we said we can do the same thing in last mile and people can own a manageable size business.”

Dave Clark, Amazon's senior vice president of worldwide operations, speaks during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

(Reporting By Jane Lanhee Lee; Editing by Greg Mitchell and Cynthia Osterman)

Dave Clark, Amazon's senior vice president of worldwide operations, speaks during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

A Mercedes-Benz van displays the Amazon logo during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Olaoluwa Abimbola, a beta participant in the new program, shakes hands with Dave Clark, Amazon's senior vice president of worldwide operations, during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Dave Clark, Amazon's senior vice president of worldwide operations, speaks in front of an Amazon branded van during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Dave Clark, Amazon's senior vice president of worldwide operations, speaks during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Dave Clark, Amazon's senior vice president of worldwide operations, speaks during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Olaoluwa Abimbola, a beta participant in the new program, talks with Dave Clark, Amazon's senior vice president of worldwide operations, during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Amazon senior manager of product management Parisa Sadrzadeh stands in front of an Amazon Prime van during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Dave Clark, Amazon's senior vice president of worldwide operations, is interviewed in front of an Amazon Prime van during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

Amazon senior manager of product management Parisa Sadrzadeh opens the back of an Amazon Prime van during a press conference announcing Amazon.com's new program to help entrepreneurs build businesses delivering Amazon packages, including $1 million to fund startup costs for military veterans, in Seattle, Washington, U.S., June 27, 2018. REUTERS/Lindsey Wasson

An Amazon box is seen on a cart before being delivered by a Correos Express delivery worker in downtown Ronda, Spain, June 7, 2018. REUTERS/Jon Nazca