Amazon To Cease Gig Economy Delivery Service In Second Largest Market Inc AMZN looks to shut down its gig economy delivery service in Germany, its second-largest market after the U.S., for undisclosed reasons, Bloomberg reports.

Uber's Flex program, which signed off in the U.S. in 2015 before expanding to Germany two years later, paid drivers to ferry packages in their vehicles from Amazon warehouses to customers' homes.

Amazon sales in Germany reached $37 billion in 2021, up 26% year-on-year. Amazon offered some Flex drivers a one-time payment equal to four weeks' pay.

Amazon has built a more formal delivery network, relying on small startups obligated to Amazon known as Delivery Service Partners. 

Bloomberg notes Amazon assured assisting the former Amazon Flex delivery partners in finding other opportunities across Amazon's operations in Germany, including the DSPs.

The DSP network was capable of absorbing "the very small portion of deliveries that Amazon Flex has been making."

Amazon has 67 delivery stations in Germany, up from 10 before the pandemic began, as it doubled its warehouse capacity during the pandemic to tap the budding demand.

Amazon has started weighing alternatives to cut down on its CAPEX as it reported its first quarterly loss in seven years amid pandemic recovery. It acknowledged being overstaffed with an excess of warehouse space. 

Price Action: AMZN shares closed lower by 1.43% at $123 on Tuesday.

Photo via Wikimedia Commons

Posted In: NewsTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.