This New Amazon App Would Pay Regular People To Deliver Packages

Amazon Plan Could Change The Way Online Retailers Operate

by Josh Guckert

The Wall Street Journal reports that Amazon is currently developing a mobile app, tentatively named “On My Way,” that would pay everyday people (rather than professional couriers employed by UPS, USPS and FedEx) to store and deliver packages. The plan would include the use of retailers, likely renting space from them or paying a per-package fee.

The move by Amazon is likely due to rising costs for shipping that have occurred over recent years. The new idea is on top of ongoing operations by Amazon, including use of bicycle messengers for Amazon Prime one-hour delivery and delivery firms for same-day Fresh grocery service. Additionally, it has been developing aerial drones for parcel delivery.

In this era, Amazon’s “delivery sharing” program joins concepts like Airbnb, Uber and Lyft as novel ideas placed upon seemingly simple and established goods and services. As government regulations have overtaken so many different sects of the economy, entrepreneurs have instinctively explored ways that they can attract new customers while saving money.

In fact, this new service was actually developed as Amazon was considering a ride-sharing service to compete with Lyft and Uber. Once those options were explored and decided against, Amazon decided to go in a different direction, building upon the retail foundation which the company has already solidified.

Unfortunately, Amazon is almost guaranteed to find itself wrapped in more red tape as it attempts to change the way that its business of choice operates. Protectionist forces of opposition will rear their heads if they feel that Amazon poses a threat. The same happened to Airbnb, as established hotel companies have attempted to demonize the company and ensure that it has to play under a different set of rules. Likewise, Uber and Lyft have been vilified by taxi cab companies from across the country, and have even been banned in some.

Nearly always making claims for so-called “consumer protection,” those who have already cornered the market have no desire to compete with newcomers. They therefore advocate for (and sometimes help craft) crony capitalist policies by which only entrenched organizations can properly abide.

The reason that such past developments in excessive regulation are so distressing is that, when left to operate independently, the free market is the greatest force for good for both consumers and producers. Those in the entrepreneurial sector are tasked with coming up with new ideas, and when they exhibit enough ingenuity, they are rewarded handsomely.

As this goes on throughout different areas of the economy, patrons get to enjoy the results and provide feedback with dollars, in addition to the input which they provide to both the companies themselves and their friends and family. If those at the top of the economy wish to stay there, they have no choice but to respond and continually adapt, or else their competitors will overtake them.

This is the choice that Americans and their elected representatives have to make as more of these “sharing” services emerge in the market: the option is to either allow these innovators to prosper and provide to their customers goods and service in the most efficient way possible; or to discourage such ideas by taxing and regulating them out of business.

The emergence of these kinds of businesses are in large part due to the already overwhelming bureaucracy that exists in this country. Because “traditional” companies are so burdened, more novel ones have needed to sprout out of mere necessity. Hopefully, this time around, the state can realize its mistakes of the past and allow inventions like “On My Way” to flourish, adapt or perish on their own volition, so that all sides involved may learn a lesson on the wonders of capitalism.