Posted on 06/30/2018 12:03:41 AM PDT by 2ndDivisionVet
SEATTLE (AP) — Your Amazon packages, which usually show up in a UPS truck, an unmarked vehicle or in the hands of a mail carrier, may soon be delivered from an Amazon van.
The online retailer, wanting more control over how its packages are delivered, is rolling out a program Thursday that lets entrepreneurs around the country launch businesses that deliver Amazon packages. They'll be able to lease blue vans with the Amazon logo stamped on it, buy Amazon uniforms for drivers and get support from Amazon to grow their business. In return, Amazon gets more ways to ship its packages to shoppers without having to rely on UPS, FedEx and other package delivery services....
(Excerpt) Read more at swiowanewssource.com ...
As for the facility, jobs, jobs and more jobs........
On a local basis, If you're shipping your own parcels, you're only paying the driver an hourly wage as opposed to a per package charge by UPS.....
The weakest link in the Amazon supply chain is currently the contract delivery. They have been avoiding UPS and USPS in favor of some anonymous delivery. Out here in fly over country, that translates to some urban dweller who doesn’t know how to navigate country roads and their associated livestock. Every problem that I have had with delivery, goes right back to these free lancers. Amazon replaces the lost packages, but I’m sure that they know exactly how much money this situation is costing them.
Now, they just to train the drivers to bring dog treats.
MAGA!
Have you ever seen an old UPS truck for sale ?
Maybe they contract out these days
Around here, Amazon uses unmarked large white vans (Ford Transit sized - not sure of the brand) for their same day delivery.
Looks like a pretty low return if the ‘potential’ $300k is net for an operation with over 100 employees. (With an operation that large, you’re going to need HR, Payroll, supervisors, etc. Will the leases include service, or are you going to need to log and schedule and contract for that. You can probably get buy with a part time lawyer on staff at first, but eventually you’ll need a full time lawyer. And lots and lots of insurance. The contract with Amazon is going to be one sided.
And, finally, why would you need 100 drivers for 10 trucks. I can see 20 drivers, but even if you run the trucks into the ground 24/7 you can’t use more than 5 drivers per truck, and that includes backups waiting for someone to get sick or hurt.
They have so much business these days, they're having to rent trucks to keep up with the demand. I see at least 20 Ryder trucks in the sort area every day.
I've been working there about five months, the turnover there is mind boggling. Every week, they bring in 10 new people for the sort/load hub, 90% are gone before the month is out.
Why? Some get better jobs, but the younger workers split because of the work...there's no a/c in the warehouse, though giant fans are everywhere. I lose 3-5 pounds during every 4 hour shift. I dropped 20 pounds my first three months under the "UPS Workout Program"...lol.
Amazon's model works much better when unemployment is over 5%...not so much at less than 4. I'm sure their warehouse operations have as much turnover as UPS.
In suburban and metro areas, the Amazon delivery will work. In rural areas with the larger distances and worse roads in some areas it’s going to have problems. Amazon probably doesn’t realize that GPS doesn’t work everywhere nor do cellphones. For years I had a physical address that USPS absolutely would not deliver too. Generally for larger items I specified hold at the trucking company location and I would pickup. UPS knew to place the delivery in a plastic bag and leave it at the 150’ suspension walk bridge across the creek. One driver in a box truck made it across the creek and up to the house. He damaged his truck.
Where are the drones? (Fracking half-arsed idea in the first place.)
Sounds like FedEx Home.
The IRS will want them on W2.
Kroger’s is trying out driver-less delivery cars.
There are plenty of people who would like to be drivers. Labor participation rate is well off its highs.
The issue that the drivers need to be supervised. The local "owner" is the one who provides the local supervision. I am viewing this as sort of like a fast food franchise. A dedicated person with his own money invested can do quite well, and Amazon would also benefit.
They can’t find drivers. Amazon is going to all of the Package Delivery & Logistics trade shows trying to sign people up for their new service. Even telling Mom’s to work for a few hours a day once the kids are in school. So far, they are way short of the drivers they need.
Fixed it.
UPS man has been feeding our family’s dogs for almost 40yrs.
That is if you use all of Amazon's preferred providers; go another route and you likely wouldn't even see that margin. Additionally, Amazon REQUIRES that participants provide paid time off, benefits, etc.
I also don't see any allocation of funds for an office, secured parking for 40 vehicles, business licenses and fees, etc. Toss in unemployment contributions, a couple workman's comp cases, and I'd imagine clearing $2,000 a week after taxes would be a challenge for ‘owning’ a business with a hundred employees and a singular customer who really is under no obligation to continue to use you as they explore innovations.
(Oh, and for that $2k a week, you're expected to ooh-rah employees 7 days a week with morning and evening ‘team’ meetings. Figure about a $23 an hour ‘wage’ with everyone but you getting time off.)
That's a pretty hefty treadmill that Amazon expects ‘owners’ to pound on.
All in all, someone going into it with open eyes, risking just under $100k and willing to put in 84 hours a week, it's not the best return on the money, but it's a pretty solid one. In more expensive markets, you might even be able to keep your head just above poverty level.
100K per year?
84 hours a week?
23 dollars an hour.
not much money for all that liability and responsibility.
earnings ain’t profit.
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