Amazon Testing New Delivery Service

In the latest shift in Amazon’s relationship with American malls, the Seattle-based company is testing a service that uses their network of gig drivers to fetch packages from established mall retailers and deliver them to consumers. The program has the potential to help Amazon expand upon the variety of goods it has available for same day shipping.

Historically, Amazon has relied on third parties like the US Postal Service and UPS for last mile delivery. In 2015, the company launched its own delivery unit called Flex. Four years later, Amazon started the Delivery Service Partner program, which relies on independent contractors to deliver packages in Prime-branded vans. Today, Amazon handles most of its own US deliveries.

Building its own logistics operation has benefited Amazon immensely, but it’s come at a cost. Last month, the company reported its first quarterly loss in 7 years. If the testing does well, delivering from established retailers could help Amazon cut expenses by allowing them to rely on fewer expensive depots and warehouses.

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