Amazon German unit is recruiting its own drivers in the country in order to develop its delivery network. The company also plans to open 11 distribution centers as it strives to expand delivery in its second-largest market.
This comes as the e-commerce giant works towards increasing the speed of delivery of packages all around the globe via land, sea, and air. Besides that, it is also an effort to reduce shipping expenses which have risen considerably a proportion of sales.
The Germany director of Amazon Logistics, Bernd Gschaider, said in a statement that acquiring control over the last-mile delivery will allow the company to provide the likes of same-day delivery services to its customers.
Gschaider said that the move by the company to increase distribution centers and take greater control over delivery was to help cover larger volumes of products. But this may be problematic for logistics firms like Hermes and DPD and Deutsche Post DHL which get their businesses running mostly through Amazon.
This comes as the delivery businesses in Germany are under great scrutiny over subcontracting. Many e-commerce firms like Amazon get their packages delivered through subcontractors. However, many subcontractors have been found not paying minimum required wages to their drivers.
The German cabinet is expected to pass laws to make such firms pay for breaking the labor laws of the country by not paying minimum wages to drivers. Gschaider informed reporters that the legislation would not affect the company’s delivery operations as it already conducts audits to make sure that the drivers are paid sufficiently and are not overloaded with work.
The company also plans to open 2 sorting centers to accommodate the deliveries that would increase during the coming Christmas season and also increase its reach beyond the main cities of the country.