The Amazon Freight Partner programme is an evolving programme, and, as discussed further below, the startup costs, annual revenue, and annual profit figures are estimates only. We do not guarantee results of any kind, including that a company’s earnings will exceed the company owner’s investment in his or her business. A company’s actual startup costs, annual revenues, and annual profits will vary, and will depend on a number of expected and unexpected factors, including but not limited to, for example, the company’s size, location, and the company owner’s efforts and management of expenses.
The startup cost figure is an estimate of reasonable expenses that a company with no previous infrastructure incurs before its first revenue-generating trip, and is based on initiating operations with 5 Amazon-branded trucks. The startup cost estimate considers, for example, costs payable to third parties associated with insurance, basic office supplies and technology, driver recruitment and onboarding, and implementing an accounting and payroll infrastructure. Importantly, the startup cost figure assumes that a company takes advantage of all third-party deals impacting startup costs that have been negotiated by Amazon in connection with this programme, such as insurance and Amazon-branded truck services. Amazon-branded trucks require no upfront investment. While a company is not required to pursue these third-party deals in order to participate in the programme, the startup cost figure might vary in case the company pursues the services directly. Some costs within the startup cost figure are based on actual partner performance, whereas others are fixed or estimated costs. On top of the startup cost figure, successful candidates will be required to present a proof of £48.5K in liquid assets to secure an operating license for 10 trucks.
The annual revenue and profit potential ranges are estimates for companies operating between 10 and 15 trucks, with the low end of each range representing an estimate for companies operating 10 trucks (based on actual numbers of current Amazon Freight Partner companies operating 10 trucks), and the high end of each range representing an estimate for companies operating 15 trucks (based on projections from companies operating 10 trucks). The revenue and profit ranges reflect Amazon’s estimates of reasonable fixed and variable costs that a company may incur, including costs associated with complying with all of Amazon’s contractual requirements and programme policies. These costs include but are not limited to, for example, leasing vehicles and insurance, driver labour, and obtaining professional services associated with running a company. As with Amazon’s startup cost estimate, Amazon’s estimates of reasonable fixed and variable costs assume that a company takes advantage of all third-party deals impacting costs that have been negotiated by Amazon in connection with this programme. Again, Amazon does not require a company to pursue these third-party deals, but a company’s revenue and profit potential may vary depending on the cost the company negotiates for the services. Amazon’s revenue and profit ranges are supported by annualized financial performance results from 2020 and 2021 volunteered by a subset of companies operating 10 trucks in the programme and working within reasonable fixed and variable costs, supplemented where necessary with relevant projections. Of those partners that volunteered performance results, most of those which have scaled to at least 10 trucks are within our estimated profit and revenue ranges.
A company’s actual annual revenues and profits will vary based on a number of expected and unexpected factors, including but not limited to, for example, management effectiveness, truck fleet size, regional operational cost differences, driver salary, and whether there is variability in any of these factors over the course of a year. Again, because the revenue and profit ranges are figures and projections based on companies operating between 10 and 15 trucks, a company may not achieve results within the ranges until it operates with 10 to 15 trucks for a full year, if ever.
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