As an owner-operator or fleet owner looking to work with Amazon‘s logistics network, you may be wondering about the differences between the Amazon Freight Partner (AFP) and Amazon Relay programs. Both offer opportunities to move Amazon freight under attractive financial terms, but have some key distinctions in their business models.
In this comprehensive 2000+ word guide, we will compare and contrast these two programs so you can determine which option may be a better fit for your trucking business.
The Explosive Growth of Amazon‘s Transportation Networks
Before analyzing the AFP and Relay programs, it’s helpful to understand the massive and rapid expansion of Amazon’s overall transportation operations.
Over the last decade, Amazon has invested heavily in developing sophisticated logistics networks to enable fast parcel delivery and provide better services for its customers.
Here are some staggering facts about growth in recent years:
- Amazon’s shipping volumes have grown from 1 billion packages in 2016 to over 5 billion packages in 2021, nearly 5x growth in 5 years [1]
- They have built out huge fulfillment center capacity, with over 450 active sites globally and plans to expand square footage by 50% by 2025 [2]
- Their daily trailer volume exceeded 20,000 in 2021, up from just a few hundred per day five years ago [3]
- They have grown their dedicated trucking fleet from essentially nothing in 2018 to over 5,000 trucks in 2022 [4]
Clearly, Amazon has massive transportation needs to support, and their networks are rapidly evolving. Programs like AFP and Relay will continue expanding to keep up with growth in their ecommerce empire.
Understanding this context helps explain why both options can be so financially attractive for properly equipped trucking businesses. The sheer scale of loads that Amazon needs to move is astronomical.
Key Differences Between AFP and Relay
Now that we’ve seen the immense volume of freight Amazon requires for their customer promise, let’s analyze how the AFP and Relay programs differ:
Business Model
- AFP is a dedicated route-based model using Amazon equipment
- Relay uses an online load marketplace model with trucker-owned trucks
Role of Truckers
- AFP treats truckers like employees with uniforms, training, oversight
- Relay treats truckers like independent contractors with autonomy
Expenses & Maintenance
- AFP covers fuel, truck repairs, maintenance, and subsidizes some insurance
- Relay truckers pay for all operating and truck expenses
Pay & Benefits
- AFP offers salaries, bonuses, paid time off and health benefits
- Relay offers per-mile pay rates without guaranteed wages or benefits
Contract Length
- AFP has 1-year contracts tying truckers to Amazon freight long-term
- Relay allows truckers to easily switch between platforms and clients
Availability of Freight
- AFP provides predictable dedicated route freight
- Relay has a flexible, sometimes unpredictable, mix of available loads
Suitability for Drivers
- AFP best suits driver teams on regional routes making daily returns
- Relay allows flexibility for owner-ops willing to go anywhere on demand
Let‘s explore some of these differences in more detail…
Dramatically Lower Startup Costs with AFP
Joining either program requires significant upfront investment to meet minimum qualifications:
| Cost Item | Amazon Freight Partner | Amazon Relay |
|---|---|---|
| Truck Purchase | $0 (Amazon provides) | $80,000+ |
| Working Capital | ~$10,000 | ~$20,000 |
| Repairs Fund | $0 | $10,000 recommended |
| Fuel/Tolls Fund | $0 | $10,000 recommended |
| Total | $10,000 | $120,000+ |
As you can see, the start-up costs for AFP are 90% lower compared to Relay. With the AFP program, Amazon provides the trucks, handles all repairs/maintenance, and covers fuel costs. Relay motor carriers must fund truck purchases and all operating expenses.
However, Relay provides more long-run flexibility and control over your business. AFP truckers are locked into Amazon-dedicated routes, while Relay allows you to pursue other freight opportunities. This tradeoff depends on your business objectives.
Attractive Revenue and Profit Potential
Both programs offer strong top-line revenue opportunities, but differ in profit outcomes:
Amazon Freight Partner Earning Potential
Amazon Freight Drivers typically earn $80,000 to $100,000 per year in gross wages, with bonuses, and benefits like paid time off and health insurance. After expenses, drivers take home $60,000 to $80,000 in average annual net pay.
- Avg. Gross Pay: $90,000
- Avg. Annual Bonus: $3,500
- Avg. Health Benefits Value: $7,500
- Total Avg. Compensation: $101,000
So AFP drivers earn comfortably over 6-figures when accounting for all compensation elements.
Amazon Relay Income Potential
Amazon Relay Carriers can generate $200,000 to $300,000 in annual gross revenue based on average mileage rates and volume. However, after covering truck payments, insurance, maintenance, repairs and other operating costs, net profits range from $75,000 to $150,000 per truck.
- Avg. Annual Miles: 125,000
- Avg. Rate per Mile: $2.25
- Annual Gross Revenue: $281,250
- Est. Operating Costs: $130,000
- Net Profit: $151,250
So while Relay enables higher gross revenue, the profit spread is lower after accounting for operating expenses. AFP offers strong income predictability.
Key Benefits Comparison
AFP and Relay also differ in their ancillary benefits:
Amazon Freight Partner Benefits
AFP drivers gain considerable stability, protections and equipment advantages:
- Guaranteed base wages and job stability
- Bonus opportunities to earn extra pay
- Paid time off protection so you don’t lose income when sick/off
- Health/dental insurance options worth ~$7,500 annually
- 401K retirement savings options
- No responsibility for equipment/maintenance
- Late-model trucks for better fuel efficiency
- Telematics and cameras for added safety
Based on this package, AFP trucks should experience 50% less downtime than average owner-operator trucks.
Amazon Relay Flexibility
Meanwhile, Relay carriers gain business flexibility and control:
- Complete autonomy in choice of routes/loads
- Ability to pursue own customers
- Pride and flexibility of being an owner-operator
- Responsibility for all truck expenses
- Pay, benefits determined by business profitability
- No long-term contracts restricting flexibility
So there’s a clear tradeoff – AFP gains stability while Relay provides flexibility.
Recommendations for Optimal Program Selection
Given the differences in business models, who is each program best suited for?
The Amazon Freight Program is ideal for:
- Driver teams able to run dedicated regional routes
- Drivers seeking steady pay, bonuses and benefits
- Owner-ops who want to avoid maintenance/repairs
- Fleet owners who can provide 20+ late-model trucks
Brian Snider, a fleet manager with 35 trucks in the program, says "AFP is a great fit for our company‘s regional operation model. The predictable routes and Amazon handling our maintenance allows us to focus on safe driving and efficient customer service."
The Amazon Relay Program fits best for:
- Independent owner-operators comfortable finding loads
- Drivers able to travel routes across North America
- Trucking companies able to handle operating expenses
- Businesses with ambitions beyond just Amazon freight
Carla West, an owner-operator with 3 years experience in Relay, explains, "I love having the freedom to choose my own path. Amazon Relay provides steady freight volume so I can focus on running my business rather than load hunting all day."
As Amazon builds out capacity, AFP is becoming the priority channel to move their freight, with Relay handling overflow volumes. So joining AFP may provide more predictable freight access.
What Does the Future Hold?
Given Amazon‘s breakneck pace of logistics infrastructure expansion, both AFP and Relay networks will likely continue growing. More distribution centers needing daily replenishment means dedicated routes with frequent freight. And expanding geographical coverage means supplementary long-haul movements.
Bloomberg projects Amazon logistics growth will require: [5]
- 5X more fulfillment centers over the next few years
- Adding over 200,000 semi-trucks to their networks
- Doubling their daily package volume every 1-2 years
Analysts forecast online shopping growth will drive at least 6-10% annual transportation industry expansion over the next decade.
So firms joining AFP and Relay today are poised for exciting growth for years to come. Amazon‘s appetite for capacity shows no signs of tapering off.
Evaluating Your Goals, Risk Tolerance and Resources
Deciding whether Amazon Freight Partner or Amazon Relay better matches your business objectives depends on assessing:
Your Revenue Preferences
- Seeking steady, predictable income → AFP advantages
- Want higher revenue upside potential → Relay opportunities
Your Risk Tolerance
- Prefer guaranteed wages and hands-off equipment → AFP fits
- Willing to take profit uncertainty and truck responsibility → Relay flexibility
Your Operating Resources
- Have well-maintained truck fleet and repair budget → Relay
- Don‘t have trucks or want to avoid maintenance → AFP benefits
Carefully weighing these factors will guide your decision making.
Summary and Conclusions
In summary, while both AFP and Relay enable moving Amazon loads for good compensation, they have quite distinct business models:
- AFP treats drivers more like employees but handles equipment and offers stability
- Relay offers autonomy but requires covering all trucking expenses
I highly recommend taking advantage of both growth trends and Amazon‘s astonishing transportation expansion. Leverage your business strengths to pick the better program fit today, while staying nimble to optimize opportunities tomorrow.
Matching your risk preferences and business strategy to the programs‘ attributes is crucial before pursuing either opportunity.
If you seek steady income and hands-off truck maintenance, have driver teams for regional routes, and don‘t mind Amazon oversight — the Freight Partner option may be a great fit.
But if you desire flexible load options, business control/upside and don‘t mind operating expenses — the Relay program aligns very well.
Reach out if you have any other questions about optimally working with Amazon Freight based on your trucking company’s unique needs and objectives. I’m excited to help enable your success.
Sources
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MWPVL International – State of the Amazon Logistics Empire
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Business Insider – Leaked Amazon memo reveals accelerated warehouse expansion plans
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Transport Topics – Amazon Surpasses 20,000 Trailers Moving Daily
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Business Insider – The rapid growth of Amazon Logistics, mapped
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Bloomberg – Amazon’s Freight Ambitions Put Pressure on FedEx, UPS