Amazon is rolling out a new delivery system called Amazon Hub Delivery, which will use small businesses in 23 US states to deliver orders to customers. This program will allow local shops such as boutiques, cafes and florists to qualify as delivery partners. The goal is to improve the reliability of deliveries of the so-called “last mile”, i.e. the final part of the delivery: from the closest Amazon warehouse to the customer’s doorstep.

The initiative incorporates some similar programs already tested locally in some markets. For example, Amazon had offered a similar model in India, Japan and Spain. Amazon plans to partner with 2,500 small business drivers by the end of 2023. This approach aims to reduce shipping costs and labor disputes, but Amazon will still continue to employ its employees and has plans to purchase 100,000 Rivian delivery vans for its delivery operations.

On paper, it should be a win-win for all parties involved. Amazon is offloading the burdens of its already overburdened carriers, while small businesses can gain an important new source of income. According to Amazon, the average small business could bill about $27,000 more annually.