4 days ago
- Business
- Business Journals
The last-mile entrepreneur: How a Bay Area business owner turned Amazon deliveries into success
In August 2020, a customer came into Ronald Dubon's mechanic shop and asked him to repair an Amazon delivery truck. After completing the job, the customer mentioned that he had many more trucks needing service if Dubon could handle them.
'My eyes went big,' Dubon remembers. 'I thought I was coming up on an Amazon contract to fix vehicles.'
But soon, Dubon discovered a different opportunity. The customer explained that Amazon doesn't operate the ubiquitous vans that take packages from its warehouses and deliver them to customers' homes. Instead, it contracts with more than 4,400 independent logistics companies to handle last-mile delivery.
Dubon, who owned a delivery company of his own, was intrigued. He completed an online application for Amazon's Delivery Service Partner program the next day. He moved quickly through Amazon's interview process and, by October, was taking delivery of a fleet of 20 vehicles to launch his business.
'My life changed in that moment,' he said.
expand
Inside Amazon's DSP program
Turning his Inner City Logistics business into an Amazon DSP was relatively simple, Dubon said. Amazon negotiates with vendors that supply most of the equipment DSPs need to purchase for their businesses, such as Amazon-branded vans, uniforms and handheld devices. The company also offers access to various optional business services, such as insurance, accounting and payroll software.
Amazon's commitment to its DSPs is growing, too. In September 2024, the company announced it plans to incrementally invest more than $2.1 billion in the DSP program. It plans to spend the money on safety programs, rate cards, training, value-added services, incentives and other areas to support the businesses that handle its last-mile deliveries.
'I was awarded contracts with other logistics companies in the past, but it was like, 'Do you want a contract? Do you have a truck? OK, bring the truck and start running loads the next day,' Dubon said. 'The vetting process with Amazon is just a different world. When I started seeing all of these things and the level of the structure, I knew I was onto something that was going to be the future.'
Today, Inner City Logistics ranks among Amazon's top-performing DSPs. Dubon's team of more than 100 employees operates 38 Amazon routes across San Francisco, Milpitas, San Jose and Fremont, scaling to as many as 100 routes during peak periods.
Discovering the recipe for business success
Amazon's training, structure and support to its DSPs has benefitted Dubon's other entrepreneurial efforts, including L'Roco Grill, a Salvadoran restaurant in San Jose. Dubon's wife, Lady Ruiz, runs the restaurant and handles backend responsibilities for Inner City Logistics.
'I used to operate businesses with a fear that came from not knowing if what we were doing was right or wrong because we didn't have that guidance,' he said. 'We learned a lot about how to run a good business. It's been a big change.'
Amazon's training also underscored the importance of intentionally building your company culture to serve two types of customers: external customers who purchase goods and services and internal customers who work for your business, Dubon said.
'That concept alone makes a huge difference on how you walk into your building and how you treat people,' he said. 'Not only the people who come in to spend money at your business but also your employees because, ultimately, they are your clients. You need to make them both happy.'
Elevating entrepreneurship
Dubon's passion for entrepreneurship and professional development extends beyond his businesses. He's helped one employee go on to open his own DSP business, and two more are on their way to doing the same.
Dubon has become a champion for Road to Ownership, an accelerated training program Amazon offers to help high-performing DSP employees become DSP owners. The 16-week program includes classroom-style training and mentorship by a successful DSP owner. People who graduate from Road to Ownership receive a $30,000 grant to help them launch their businesses.
'I pride myself on developing the best people and taking them up to the next level,' Dubon said. 'We've done that in the restaurant business, too, my wife and I. This is what I love doing.'
The first person Dubon mentored through the Road to Ownership program was Jose Mejia, who started working for Inner City Logistics as a helper supporting the company's drivers. He moved up through the company quickly, serving as a driver, then a trainer, dispatcher and operations manager.
'This is probably the guy with the best work ethic that I've ever met,' Dubon said. 'He is an extremely amazing guy, and I thought he deserved an opportunity for something even better.'
Mejia has continued his professional growth. He received a Rising Star award from Amazon for having the best DSP launch in 2023. Today, he has close to 100 employees in the Sacramento region.
It is a success story Dubon said he hopes to help repeat by supporting more entrepreneurs.
'I have a motto in my company,' Dubon said. 'I want you to come to my company as a driver, but if you leave, I want you to leave as a business owner.'
