Amazon Delivery Firms Are Bailing Amid Rising Costs, Meager Profit
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Some Amazon delivery contractors say their profits are dwindling amid rising costs
Photographer: Angus Mordant/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Spencer SoperOctober 20, 2025 at 11:00 AM UTCBookmarkSave
In 2022, Jake Clay started an Amazon delivery firm in Odessa, Texas, after hearing about the company-sponsored program from a friend. He sank $75,000 into the business and earned more than $200,000 in the first year. An Air Force veteran, Clay, 50, felt like he’d joined an elite unit.
The feeling didn’t last. Before long, rising insurance and other costs began eating into his profit. One of Clay’s drivers was badly bitten by a dog and went on workers compensation for a year, while his annual vehicle insurance rates soared fivefold to almost $500,000. Clay mulled laying off all his managers and running the business on his own, figuring he would clear about $75,000. In the end, he decided it wasn’t worth it. He quit last month.
Source: Original