Multiple Amazon delivery contractors get u.S. government bailout loans

BEIJING, July 7 (Xinhua) — Several companies that provide the last mile of Amazon delivery have received funding from the U.S. government’s new Crown Virus Outbreak Assistance Program, according tomedia reports on Monday. Several companies, Peregrine Express, Rapid Logistics, Systemize Logistics, Sheffield Express and Valdivia Logistics, each received loans of at least $1 million, and several other Amazon distribution partners received loans of up to $350,000.

The money comes from the Pay Guarantee program, part of a $2 trillion CARES bill signed by U.S. President Donald Trump earlier this year.

Multiple Amazon delivery contractors get u.S. government bailout loans

A spokesman for Rapid Logic confirmed that they did receive PPP loans. Amazon, Peregrine, Systemize, Sheffield and Valdivia did not immediately respond to requests for comment.

Amazon’s Distribution Services Partnership (DSP) program, launched in 2018, is made up of small courier companies across the United States, each with about 40 trucks and hundreds of contract workers. These courier companies pick up goods at Amazon’s distribution stations and deliver them to their customers’ homes.

With this project, Amazon’s last mile of delivery services have grown rapidly, competing with companies such as UPS and FedEx. By outsourcing last mile of delivery to partners, Amazon has saved a lot of manpower and vehicle maintenance costs, which is especially important for the online retail giant.

The PPP program is designed to enable small businesses to continue to make ends meet during the outbreak and to continue to pay their employees. In all, about 650,000 businesses have received the loan, which can be waived if the lender spends most of the money it receives on paying its employees.

Amazon has not been seriously affected since the outbreak began spreading in the United States in February and March. Amazon’s business has gained as the outbreak has led consumers to shop less often in brick-and-mortar stores and rely more on online shopping. In addition to its retail business, its cloud computing business has also seen an uptick. Amazon’s share price is up 66% since 2020.

Since Amazon’s delivery service partners are smaller, unlisted companies, it’s unclear how much amazon’s surge in business has benefited the distribution companies. The CARES bill requires all borrowers to demonstrate that “current economic uncertainties make it necessary for them to apply for loans to continue operating.” “

It is worth mentioning that the PPP project itself is fraught with conflict. Some of the start-ups that have gained momentum have benefited, as have others with close ties to the Trump administration. Democrats have put pressure on the Treasury department and the Small Business Administration to disclose information about the companies that received the loans, but Treasury Secretary Steven Mnuchin has previously signaled that the government will not disclose the information. (Line Cloud)