Amazon Relay Truck Business

Topic 34191 | Page 1

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Jiby J.'s Comment
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Hi, I was recently contacted regarding Amazon Relay Truck business(These are not the DSPs that we see in our neighborhood, but the larger trucks). The selling company currently operates over a 100 trucks. I am asked to pay the "seller" about $120K per truck. The business model says that I will also pay the operating expenses including salary, insurance etc as well as a 10% fee (like franchise fee) to the selling company on an ongoing basis. The trucks will be leased under my name from another company, so I will not own a truck. The lease is supposed to cover all repairs and is supposed to provided substitute trucks should one breaks down or is on repair. The seller's company will handle all logistics and management of the operation. I just need to manage the payroll and the weekly payment from Amazon comes to me. They are projecting annual cashflow(after all expenses) of $60K per truck. My question is if this is too good to be true? Looking for your expert opinions.

Bobcat_Bob's Comment
member avatar

I am confused as to what is the arrangement is here.

Sounds like you are leasing a leased truck? You then pay the driver, truck expenses, insurance and a 10% fee.

If that is the case, I do not see how you will ever clear $60k per truck per year.

It definitely sounds to good to be true.

Errol V.'s Comment
member avatar

Hi Jiby, welcome to Trucking Truth. This is an unusual setup, but it sounds a lot like what I'm about to get into. (My Truck Career, Chapter IV) See if this sounds like the setup, only described in a different way:

A Fleet Owner owns the truck. The truck is leased to you but not with regular lease payments - you and the Fleet Owner split the revenue paid by Amazon, say by 60/40 (you get the 40%). Under that split, the Owner will maintain the truck, handle repairs and all the licensing.

You get your revenue split as an Independent Contractor, (1099) and pay the truck operating expenses, including fuel and tolls. (They have fuel deals so you never pay that posted fuel price.)

This is a rough description of what I'm soon going to do. I will get a straight truck with a sleeper added from a lease owner and get paid in these terms as an independent contractor. to take small loads, similar to a hotshot, but I will be working for FedEx.

  • Lease Owner owns the truck in a revenue-lease contract.
  • I will drive the truck painted for FedEx and wear a FedEx uniform.
  • Everybody's happy.
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