Amazon (AMZN) Tests Taxi Delivery Service

Amazon (AMZN) has tested using taxis in San Francisco and Los Angeles to deliver packages to customers.

amazon-taxi-amzn
Source: ©iStock.com/killerbayer

Amazon used the taxi hailing app Flywheel to summon taxis to distribution centers. It then loaded the taxis up with as many as 10 packages that were all bound for delivery in the same ZIP Code. The tests had the company paying about $5 for each delivered package, reports The Wall Street Journal.

Amazon held the majority of these tests early in the morning. This allowed the taxi drivers to avoid customers and competitors. It also helped them out as they typically had less passengers in the morning hours. The new tests could help same-day delivery reach more customers, WSJ notes.

Amazon has been working on other alternatives for shipping its products. The online retailer has attempted to speed up deliveries with Sunday shipping through the U.S. Postal Service and is considering testing drone delivery in India

. The online retailer has also patented a system that would track a users activities on its website and pre-ship packages to an area near them before they order.

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