Amazon opts for gig economy drivers to deliver from malls

Bloomberg

Amazon.com Inc is testing a service that uses the company’s sprawling network of gig drivers to fetch packages from mall-based retailers and deliver them to customers.
The program, should it become a permanent part of the e-commerce giant’s delivery options, could help Amazon expand the variety of goods it has available for fast shipment. Shoppers who want same-day or quicker shipping could be shown products stocked by a local mall store. They order the item from the retailer on Amazon.com, and one of the Seattle-based company’s contract drivers delivers it.
The service was up and running by last year and relies on Amazon Flex drivers, who
use their own vehicles to deliver packages. The geographic range of the pilot is unclear, but communications with drivers reviewed by Bloomberg reference malls with participating retailers in Chandler, Arizona, Las Vegas, Nevada, and Tysons Corner, Virginia.
Amazon spokesperson Lauren Samaha said a “handful” of the company’s existing partner retailers are participating in the program but declined to name them or reveal how much the service would cost customers or stores. She noted that retailers have offered their products for delivery on Amazon for years.
“This is just another way we are able to connect Amazon sellers with customers via convenient delivery options,” she said in an emailed statement.
The initiative could escalate the already fierce competition between established retailers and startups working to rapidly deliver goods ordered online, often using the services of contract drivers.
Instacart Inc is broadening its offerings beyond groceries, DoorDash Inc handles some deliveries for retailers like Macy’s Inc. Other Amazon rivals like Walmart Inc and Target Corp use gig-economy drivers to deliver some items from their shelves.
Under the new initiative, drivers stop at shopping centres instead of Amazon delivery stations. It’s the latest twist in the Amazon’s complicated relationship with American malls, which are struggling to remain relevant as shoppers stampede online.