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Amazon pauses delivery fleet redeployments after outcry over repair costs - WSJ
ByAinvest
Wednesday, Sep 3, 2025 1:23 pm ET1min read
Amazon pauses delivery fleet redeployments after outcry over repair costs - WSJ
Amazon.com has temporarily halted the redeployment of its delivery van fleet following an outcry from third-party delivery companies over exorbitant repair costs. The e-commerce giant operates a program where small delivery businesses, known as delivery service partners (DSPs), lease vans from a fleet manager selected by Amazon and are contractually obligated to pay for repairs before returning the vehicles [1].The issue emerged when DSPs were ordered to repair their leased vans, only to face surprise bills totaling tens of thousands of dollars. These costs have threatened the profitability of many DSPs, who have little recourse without risking contract cancellation. An internal Amazon forum for delivery service providers revealed widespread complaints about unreliable repair cost estimates provided by an Amazon-supplied app [1].
In response to these concerns, Amazon has suspended all pickups of vehicles for repair ahead of redeployments while it investigates the billing complaints. Tom Chempananical, an Amazon manager overseeing the fleet, stated, "After looking at the specific data and instances that DSPs have raised over the past week, we need to further investigate" [1].
Amazon has also committed to correcting errors in repair cost estimates and issuing reimbursements where appropriate. Additionally, Beryl Tomay, Amazon’s vice president in charge of transportation, announced a temporary 20% discount for repair costs and a halt on any additional vehicle pickups until next year [1].
The pause in redeployments could have significant implications for Amazon's last-mile delivery operations, potentially impacting its ability to meet customer demands during peak periods. Investors should closely monitor this situation as it may affect Amazon's operational efficiency and the financial health of its third-party delivery partners.
References:
[1] https://www.wsj.com/tech/amazon-pauses-delivery-fleet-redeployments-after-outcry-over-repair-costs-ffa1a791
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