Amazon ends flexible delivery service in Germany


Amazon is ending its Flex gig economy delivery services in Germany, although the e-commerce giant gave no reason for the shutdown, Bloomberg reported on Tuesday (June 7).

Flex started in the United States in 2015 and expanded to Germany in 2017. The service pays drivers to transport packages in their own vehicles from Amazon warehouses to customers’ homes.

A spokesperson said the company regularly reviews its programs and has “made the difficult decision” to discontinue Flex in Germany.

“We actively support former Amazon Flex delivery partners to find other opportunities among the hundreds of roles and opportunities in Amazon’s operations in Germany,” the spokesperson said.

The report says Amazon offered some Flex drivers a one-time payment equivalent to four weeks’ pay. Bloomberg noted that Amazon is building a newer, more formal delivery network that uses small startups beholden to Amazon, called Delivery Service Partners, or DSPs.

Some of the Flex drivers would be encouraged to join the DSPs, and the report says the network can absorb the “very small portion” of deliveries made by Flex.

PYMNTS wrote that Amazon shares rose 5% on Monday, June 6, which was the first day of the 20-to-1 split announced by the e-commerce giant in March. However, the shares were still trading around 25% lower than at the start of 2022.

Read more: Amazon Stock Split Triggers Offshoots

Mark Lehmann, CEO of JMP Group, said stock splits are “generally a sign of optimism” and few companies split their shares if they think things will go wrong.

The report says stock splits have no effect on share value – although traders are delighted they are becoming more common among the biggest names in business.

Amazon was called a “company in transition” in the report, as it planned to move in several different directions last month, including its Alexa ecosystem and defensive health system.



About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.


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