Amazon Pulls Plug on Kia Soul Same-Day Delivery Experiment After 12-Month Run
Amazon's bold same-day delivery experiment with the Kia Soul hits a dead end—just as Wall Street analysts finish polishing their 'logistics disruption' PowerPoints.
The e-commerce giant quietly axed its yearlong trial of using the compact hatchback for lightning-fast deliveries. No reasons given—just another corporate 'learning experience' that somehow always costs someone else's money.
Meanwhile, crypto delivery trucks keep rolling 24/7. Just saying.
TLDRs:
- Amazon has discontinued its Kia Soul same-day delivery pilot after determining it failed to meet operational goals.
- The company will now rely on Flex drivers, who use their own vehicles, to handle same-day deliveries.
- Amazon’s shift reflects the cost and flexibility advantages of gig-based models over contracted fleets.
- The decision aligns with Amazon’s broader strategy of testing and refining last-mile logistics to meet fast delivery demands.
Amazon has officially ended its yearlong trial program that used rented Kia Soul vehicles for same-day deliveries, marking a strategic shift in the company’s ongoing logistics experimentation.
Launched in 2023 across key states including Florida, Illinois, and Texas, the pilot relied on contract delivery firms to operate the compact hatchbacks for short delivery shifts. The goal was to test whether a more controlled and branded delivery vehicle model could meet customer expectations for fast delivery at scale.
Amazon Winds-Down Kia Trial
After gathering feedback from customers, contracted partners, and internal teams, Amazon determined the program did not meet operational benchmarks.
The company is now winding down the trial, with the rental vehicles set to be returned to their suppliers. Delivery Service Partners (DSPs), who ran the Kia Soul vehicles under Amazon’s branding, will be gradually transitioned out of the program over the coming months. Amazon has committed to helping those drivers find new roles where possible.
The end of this trial reflects a return to a more flexible workforce. Amazon will now shift same-day delivery duties back to its Flex program, which relies on independent gig workers using their own personal vehicles. Flex drivers, who sign up via an app and are paid per delivery block, offer greater scalability and adaptability in fluctuating demand environments, particularly in urban areas where same-day delivery is in high demand.
The program was designed to increase control over same-day logistics by deploying uniform vehicles operated by third-party contractors. However, performance in meeting same-day delivery targets fell short. Analysts say the effort exposed the difficulty of balancing fleet management, labor costs, and route efficiency without incurring excessive overhead. The Kia Soul model, while compact and affordable, did not provide the scale or flexibility needed for fast-paced urban deliveries.
Gig Economy Proves more Adaptable
The MOVE back to Amazon Flex underlines the enduring appeal of gig-based delivery models. While such models have drawn criticism over worker classification and benefit gaps, they continue to dominate rapid delivery due to their low cost and ability to expand or contract based on demand. In 2024 alone, the gig economy was valued at over $550 billion globally, and projections show that figure could triple by 2032. Flex drivers allow Amazon to sidestep the fixed costs associated with managing a dedicated delivery fleet while still fulfilling customers’ growing appetite for instant gratification.
A glimpse into Amazon’s evolving logistics strategy
This latest decision is in line with Amazon’s broader pattern of logistics innovation. From early experiments with “Local Express Delivery” in 2009 to its recent embrace of autonomous vehicle production via its Zoox subsidiary, Amazon has continually adapted to changing customer expectations. With over 60 percent of Prime orders already reaching customers the same day or next day, the pressure to stay nimble and cost-effective has never been greater. The shelving of the Kia Soul initiative underscores Amazon’s willingness to walk away from experiments that don’t deliver a clear operational advantage.