Business Fleet Logo
MenuMENU
SearchSEARCH

Amazon’s New Delivery Model Has Implications for Fleet

Independent courier services working with Amazon.com are buying vans — lots of them.

Chris Brown
Chris BrownAssociate Publisher
Read Chris's Posts
December 10, 2015
3 min to read


It was during the holiday season of 2013, when thousands of Americans missed that special gift under the Christmas tree because Amazon.com could not deliver the orders in time. The backup was blamed on overwhelming volume at Amazon’s shippers, UPS and FedEx, but the customer service damage was done.

After the apologies, discounts and refunds, Amazon decided to take control of its deliveries. The company began expanding its warehouse footprint by opening more than 50 new, smaller fulfillment centers around the country. And deliveries in many cities are now being handled by independent contractors.

They’re called Amazon Delivery Service Providers (DSPs), and their vehicle needs present new opportunities for fleet providers.

In a span of two months, Karl Kirker, fleet manager at Mossy Nissan in El Cajon, Calif., sold more than 100 Nissan NV and NV200 vans to three new Amazon contractors. The dealership has delivered vans to Las Vegas, Phoenix, San Francisco, Seattle and Chicago.

Nissan Commercial Fleet formalized a purchase program for Amazon DSPs, providing discounts under its Franchisee Program. (A survey of four other independent fleet providers revealed they were not selling to Amazon DSPs, nor were they aware of Amazon’s new system.)

Kirker says most Amazon DSPs already run courier services, with various size fleets — from a handful of vehicles to hundreds — but not at this level. They’re doubling and tripling their staffs overnight, and their delivery schedules are widening to nearly a 24-hour window, seven days a week. “It’s exponential,” he says. “It’s got to be nerve-wracking, but everyone is trying to make it work.”

(Ironically, mirroring Amazon’s Christmas delivery problems, Kirker says other Nissan dealerships promised delivery of vans to these Amazon contractors by a certain date, but they couldn’t deliver. Kirker says he was simply more realistic on a delivery date, and thus was never late.)

Kirker says his Amazon DSP customers buy the basic van with no upfit, save a partition in some cases. The purchase split is 60% NV 1500 and 40% NV200.

This world seems to be in flux right now as Amazon’s new delivery model sorts itself out. “One customer ordered 427 vans, and two weeks later said some things are changing, let’s cancel the order,” Kirker says, though talks are ongoing.

This new, outsourced delivery model would seem to be poised to grow. For one, the online ordering and doorstep delivery model is increasingly exponentially, from grocery delivery services to “same hour” services such as Amazon Prime Now.

Google Express hires drivers as independent contractors, but it has come under fire in a lawsuit regarding misclassification of independent contractor status. Using a licensed courier service in the Amazon DSP model would seem to avoid this.

And then there’s an even newer, peer-to-peer delivery model, which relies on individual users to transport goods on their personal errand routes. (Let’s not go there yet, and have to ponder the legal ramifications of an accident in a personal vehicle while delivering a package.)

Nonetheless, let’s be on the lookout for a growing group of entrepreneurs who will need vehicles and the resources on how to manage them.

More Blog Posts

Auto Focusby StaffOctober 21, 2020

2021 Ford Transit Offers Versatility for Fleets

For the 2021-MY, Ford made ergonomic enhancements for drivers and added an available Parcel Delivery Package. This follows a major refresh in 2020, which added a Crew version, a new standard engine, standard active safety technologies, and embedded telematics to the Transit van family.

Read More →
Auto Focusby Chris BrownMay 5, 2020

Recognizing the Other Essential Drivers

Vocational and business fleet drivers don’t get the attention that truckers do. Yet they too are on the front lines, and their jobs often bring them into uncontrolled environments every day.

Read More →
Auto Focusby Chris BrownMarch 2, 2020

It’s Time to Formulate an ADAS Game Plan

As proliferation of Advanced Driver Assistance Systems (ADAS) increases, skilled labor, equipment, and training costs will increase as well. Fleet operators can’t mitigate these financial burdens by cutting corners on ADAS recalibration and repairs.

Read More →
Ad Loading...
Auto Focusby Chris BrownMay 2, 2019

The Future is Electric, But…

With an increasing emphasis on emissions reductions mandates, will fleet operators get caught between clean technologies on their way out and an electric future that hasn’t yet arrived?

Read More →
Auto Focusby Chris BrownMarch 12, 2019

6 Trend Lines from the 2019 Work Truck Show

From giant leaps in torque and towing to heavy duty truck personalization and chassis cab styling, these trends emerged from this year’s Work Truck Show in Indianapolis.

Read More →
Auto Focusby Chris BrownMarch 11, 2019

They’re Coming for Your Diesel

In Southern California and other parts of the world, regulators are coalescing to ban, or severely curtail, diesel vehicles. There’s a growing disconnect with the mandates to green the environment and the availability of products and technologies to get us there.

Read More →
Ad Loading...
Auto Focusby Chris BrownJanuary 23, 2019

Hey Cannabis Companies, Welcome to Fleet

An industry is forming, and it needs help with fleet. In the meantime, the fleet industry should know that these new businesses are navigating extraordinary circumstances, which is forcing them to be better fleet operators pretty darn quick.

Read More →
Auto Focusby Chris BrownOctober 16, 2018

Takeaways from the Fleet Forward Conference

Most attendees — from established fleets and vendors to new players that were only formed five years ago — didn’t know anyone. But that’s exactly the point.

Read More →
Auto Focusby Chris BrownJune 28, 2018

Is it Time to Rethink How Drivers Are Paid?

With the ELD rule affecting miles driven, and drivers’ duties increasingly including more than just driving the vehicle, what can be done to more accurately and fairly reflect a driver’s workday?

Read More →
Ad Loading...
Auto Focusby Chris BrownMay 21, 2018

Whatever Happened to CNG?

While the light-duty market for compressed natural gas vehicles has almost evaporated, new near zero emissions technology and drastic reductions in infrastructure costs have reinvigorated the market for medium- and heavy-duty applications — even for smaller fleets.

Read More →