- 23 August 2021
- Transport / Logistics Services
A new franchise based carrier network called the Frontdoor Collective has launched in the United States.
Like The APC in the UK, it is a network of final mile operators with common service standards that offer same-day and next-day deliveries.
Many of the current 100 or so Frontdoor Collective operators participate in the Amazon Delivery Service Partners (DSP) scheme. The four co-founders of the franchise have all been involved in DSP, while the two CEOs are former Amazon executives. Chief Strategy Officer Penelope Register-Shaw ran the Amazon DSP scheme in 2016.
One of the issues faced by DSP driving companies is that the number of routes and trucks available to them has been capped and this limits the revenues they can achieve – far below the $300,000 annually claimed by Amazon.
That said the Frontdoor Collective doesn’t aim to compete with Amazon – all operators can retain current relationships – and many will remain on the DSP scheme while working with the franchise.
Franchisees pay a set fee to join the network but will maintain their autonomy and existing contracts while operating in the wider Frontdoor Collective national network.
They must however commit to minimum standards to maintain their franchises. Van rentals and uniforms can be provided, as well as support for technology and marketing. It also partners with electric vehicle providers – it has committed to have a fleet of 10,000 electric vans by 2024 with the first to start operating in the second half of 2023.
On launching the organisation, Frontdoor Collective had 100 DSP members and has announced plans to have 300 by the end of the year. Though it plans to go head to head with UPS and FedEx in the near future it currently has the capacity of one million parcels a day – as against the giants’ 20 million parcel a day capacity.