The giants of the delivery world have a new challenger to contend with, and it’s like nothing they’ve seen before.
It’s not a gig-economy startup or a massive foreign corporation coming to America. It’s the Frontdoor Collective, a coalition of more than 100 small businesses, the vast majority of them delivering packages for Amazon. Some say they are frustrated by deteriorating returns and limited growth potential, and they have banded together to form their own last-mile delivery company.
The collective, which emerged from stealth Thursday, has been onboarding small delivery companies via a franchise model, with the promise of unlocking new sources of revenue by contracting directly with retailers other than Amazon. Its four cofounders all deliver for Amazon, and two company leaders are former Amazon executives who are now intent on giving small delivery businesses equity and a say in the way the new company runs.Business Insider