Amazon DSPs were among recipients of PPP loans

Dozens of companies that handle last-mile delivery for Amazon received funds from the government’s coronavirus relief program, according to data released Monday. 

Peregrine Express, Rapid Logistics, Systemize Logistics, Sheffield Express and Valdivia Logistics each received at least $1 million in loans, while dozens of other delivery partners got $350,000 or less. Money from the Paycheck Protection Program, or PPP, was made available as part of the $2 trillion CARES Act, which President Trump signed earlier this year. 

A representative from Rapid Logistics confirmed it received a PPP loan. Amazon, Peregrine, Systemize, Sheffield and Valdivia didn’t immediately respond to requests for comment.

Amazon’s Delivery Service Partner (DSP) program launched in 2018, is made up of small delivery companies across the country, each with networks of about 40 vans and sometimes hundreds of contracted drivers. The companies pick up packages from Amazon delivery stations and drop them off at doorsteps. 

The program has allowed Amazon to quickly scale up its last-mile delivery capabilities and compete with shipping partners like UPS and FedEx. By outsourcing last-mile delivery to hundreds of small businesses, Amazon is able to avoid many of the costs associated with employment and vehicle upkeep, which is critical as it invests billions of dollars on one-day shipping. 

The PPP was created so small businesses could stay afloat and continue to pay employees during the economic crisis caused by the coronavirus. The loans, doled out to 650,000 employers, can be forgiven if recipients spend most of the money on maintaining their payroll. 

Amazon has done just fine since the pandemic hit the U.S. in February and March. The stock is up 66% this year and is trading at a record, thanks to consumers’ reliance on the company for household essentials and groceries as well as Amazon’s booming cloud-computing business.

Because DSPs are smaller and not publicly traded, it’s not clear how much of Amazon’s performance has trickled down to the delivery partners. The CARES Act requires all borrowers to certify that “the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient.”

The PPP process has been fraught with conflict. A number of buzzy start-ups benefited from the program as well as businesses with close ties to the Trump administration. Democrats had pressured the Treasury Department and Small Business Administration to disclose the recipients of PPP loans, after Treasury Secretary Steven Mnuchin implied the administration wouldn’t make the data available.  

Here’s a list of Amazon DSPs who received PPP loans:

Peregrine Express received between $2 million and $5 million in loans.

Rapid Logistics received between $2 million and $5 million in loans.

Sheffield Express received between $2…