Amazon Is Raising An Army Of Delivery Vans To Deliver Its Packages

While President Trump complains that Amazon is taking advantage of the US Postal Service, Amazon is continuing its push to cut out its competitors entirely. In its bid to control every step of the delivery process - from distribution center to doorstep - Amazon is launching a new program to entice entrepreneurs around the US to build their own Amazon-focused delivery services. These drivers will transport packages during the "last mile" of their journey - an industry term that describes the leg of a package's journey from local distribution center to doorstep.

Amazon

The Associated Press reported Thursday that the online retailing is rolling out a program that will provide entrepreneurs around the country with all the tools they need - including leasing blue vans marked with the Amazon logo directly from Amazon. The company will also sell uniforms and provide entrepreneurs with "support" as they grow their businesses.

In terms of improving customer service, the advantages of controlling the "last mile" of delivery are substantial: Amazon customers will soon be able to track their packages on a map once they've been put out for delivery. Customers can even contact their drivers to ask for a last-minute change of their drop-off location. None of this would be possible with FedEx and UPS. And for customers who'd like their packages delivered while they're at work, Amazon announced back in April that it would partner with GM and Volvo to build a system allowing their packages to be placed in the trunk of their cars. 

Amazon sent shares of UPS and Fedex reeling earlier this year when it announced "Shipping with Amazon" - a new program that allowed third-party merchants using Amazon's platform to pay Amazon, instead of its competitors, to handle deliver. Over the past two years, Amazon has expanded into ocean freight and has leased up to 40 aircraft while building its first air transport hub in Kentucky.

One Amazon contractor in the program's test market said he's already hired 40 employees to work at his company, and that Amazon provides more than enough business to keep them all busy.

"We don't have to go make sales speeches," said Olaoluwa Abimbola, who has hired 40 workers in five months.

"There's constant work, every day. All we have to do is show up."

But with the unemployment already at a multi-decade low 3.8%, we can't help but wonder: Where does Amazon expect to find all of these new low-wage workers?

Comments

Rothbardian in… Thu, 06/28/2018 - 12:05 Permalink

It's our Brawndo.  It's what plants crave.

 

It turns out the same thing can happen in technology companies that get monopolies, like IBM or Xerox. If you were a product person at IBM or Xerox, so you make a better copier or computer. So what? When you have monopoly market share, the company's not any more successful.

So the people that can make the company more successful are sales and marketing people, and they end up running the companies. And the product people get driven out of the decision making forums, and the companies forget what it means to make great products. The product sensibility and the product genius that brought them to that monopolistic position gets rotted out by people running these companies that have no conception of a good product versus a bad product.

Steve Jobs

 

So how does it end?  With lower overall utility and higher prices.  Yay!!!

Antifaschistische Shitonya Serfs Thu, 06/28/2018 - 12:29 Permalink

AMZN "delivery" is most interested in the apartment business.  Unlike other delivery providers, they don't even TRY to deliver to your doorstep.  They just wholesale "DUMP-IT" at "the office".   no notice, no message, etc.   So these contract last-mile delivery guys can deliver 40 packages in 20 minutes.

the problem is...it's not the last mile.  It's only the last 4,500 feet....the actual last 1,000 feet is not their problem.

similar attitude at the residential address...not  home?  not my problem...there's not a chance I'm coming back..this package is being left here somewhere...rain?  not my problem.  etc...

I'm not complaining, I'm just noting that buying something from AMZN means you're getting the shittiest service available.

Which is why I buy nothing from AMZN

In reply to by Shitonya Serfs

Dutti Antifaschistische Thu, 06/28/2018 - 12:30 Permalink

Even though I don't like Bezos' political views and actions, I have to admit that he "gets" the "new economy" and he is willing and able to implement new ways - and admirable disruptor!

To me it looks like he was inspired by the likes at uber and lyft, letting private "entrepreneurs" handle the last mile deliveries. Of course he has not yet gone all the way, they still drive amazon trucks instead of their own vehicles. Fedex, UPS and USPS remind me of Taxi services in that analogy.

 

In reply to by Antifaschistische

DEMIZEN Dutti Thu, 06/28/2018 - 13:09 Permalink

I know some dudes in EU who  are working on p2p delivery software where user takes over a package and secures its value with a cash deposit to earn a delivery credit

user get credits for its own free deliveries based on delivery contribution its not monetized but will be interesting to see how this goes ahead and links to crypto if it catches up. 

the software is proprietary but is only a matter of time until open source knock-off fringe pops up. I don't see it succeed here in the entirely dehumanized US

In reply to by Dutti

snblitz Dutti Thu, 06/28/2018 - 13:41 Permalink

Amazon is creating a "gig" economy for last-mile delivery.

This is actually a bad sign.  People desperate for work willing to lose a little less money by working for starvation wages.

This is similar to uber and lyft.

All of this is a sign of people desperate for work.

And it all comes from a people willing to "spend" the depreciation of the assets (car) in order to maintain some income.

In the end there income is income minus depreciation and operating costs.

For many the net income is below zero.

Further there is a race to the bottom as there are many people looking for a little "extra" (or any) income.

In reply to by Dutti

mkkby DEMIZEN Thu, 06/28/2018 - 16:27 Permalink

Nope, fail.  Uber/lift/amazon are just taking advantage of sheeple who can't do math.  Working for below min wage happens because people are tricked into thinking they have a business.  It is not.

These drivers could make much more money sweeping floors or washing dishes.  And you're not risking your life driving like a manic.  Jobs like that are extremely plentiful.  But again, sheeple are too dump to look at all their options.  That's why they're either on welfare or driving for uber.

In reply to by DEMIZEN

Theosebes Goodfellow Antifaschistische Fri, 06/29/2018 - 08:57 Permalink

~Which is why I buy nothing from AMZN(.)~

I have over the last few months started to really try to avoid AMZN. I don't like Bezos, and I know that if I do not support my local businesses they won't be around when it matters, (WTSHTF).

Same goes for Wally-world. I try to shop at the local grocer when I can. He's a tad higher, but I really hate global monopolies in household goods and foods.

In reply to by Antifaschistische

toady Stan522 Thu, 06/28/2018 - 13:18 Permalink

I am a Amazon flex driver in the Phoenix metro area, at least I think I still am....

A couple months ago all the "good" work ($18 an hour plus tips) dried up. The only work I see now is the new "crap" work (it's still supposedly  $18 an hour, but they give you 2 hours worth of work to do in 1 hour, so the effective rate is  $9, plus NO tips).

I've been trying to figure out what is happening, and it looks like this article has the answer... they're giving all the good work to people who lease an official Amazon van, and, most likely, at a reduced rate.

Oh well, it was pretty good money for a part time gig... looks like it's over now.

In reply to by Stan522

LadyAtZero Rothbardian in… Thu, 06/28/2018 - 12:18 Permalink

Here's a true story from a good friend of mine, Kate,  who told me this only yesterday.

(I don't post fake stories and spam).

Kate's neighbor's house was nearly broken into. Her neighbor called the police, and described the two guys.

The police, amazingly, caught these two guys and questioned them about "why this neighborhood?"  (which is up a fairly steep hill, with only one way out, so not good for getaways, you would think).

The two guys told the police,  "well, we have a friend who is an Amazon driver who told us."

So,  if  Amazon simply hires anybody who breathes,  we have a problem, here folks.

In reply to by Rothbardian in…

1033eruth LadyAtZero Thu, 06/28/2018 - 12:28 Permalink

LadyAtZero - Have to explain my downvote and also give you the opportunity to downvote me as well, because it ALWAYS works that way.

What you just described is PURE innuendo.  Not evidence of anything.  When anybody delivers a package, its usually to an empty house and so they leave it at the doorstep or whatever, so they don't know what, if anything is worth stealing at any particular house.  At the most a customer might be home and will open the door, at which the delivery driver can see what there is to steal around the customer and that would be it.  

To stretch this scenario and say that the Amazon delivery driver is telling his thieving buddies where the good places are to rob, defies common sense and reason - worthy of a female.  Note that all females will now downvote this because they feel they are being personally attacked even though what LadyAtZero said something that was absurd.  

Also too LadyAtZero has denounced working for Amazon in any capacity because they will hire anybody that breaths and who would want to be in that category?  

In reply to by LadyAtZero

LadyAtZero 1033eruth Thu, 06/28/2018 - 12:36 Permalink

I have no need to downvote you.

I am simply passing along what one of my best  friends told me just yesterday.

And- you are welcome to call me any names you wish, or describe me in any way you wish.  

Such writing is more reflective of you than of me.

Peace and love to you.

PS  I have great respect for honest package-deliverers who work hard.  (And I am sure they work hard).

 

In reply to by 1033eruth

1033eruth LadyAtZero Thu, 06/28/2018 - 13:16 Permalink

The fact that you would FEEL THE NEED, (feel connotes emotion) to relay something that is word of mouth in order to smear a company's reputation or people that WORK for Amazon is worthy of a female.  That's what they do, think EMOTIONALLY, and that's pretty much the extent of it.  

A man that operates with common sense and logic would NOT pass on your anecdotal because it has no value.  

In reply to by LadyAtZero

insanelysane LadyAtZero Thu, 06/28/2018 - 13:23 Permalink

I believe this story as it happens.  Just like this happened.  In my neighborhood a guy was selling some high end audio equipment on Craigslist.  A "buyer" was negotiating a time to check out the merchandise.  They go back and forth and agree on a time for the buyer to see the stuff.  However, during the back and forth the neighbor provides information on when he wasn't going to be home.  This neighbor's place is down a long wooded driveway.  The "buyer" showed up all right and took the audio equipment along with a few other things.  

With the story above, having an insider is always easier.  My mailman knows when everyone on his route is home, on vacation, etc.  These Amazon drivers are in these neighborhoods all the time.  They know things too.

In reply to by LadyAtZero

Froman LadyAtZero Thu, 06/28/2018 - 13:32 Permalink

Do not doubt your story for a minute LadyAtZero, have heard similar stories regarding package theft and Amazon contract workers tipping off thieves here in Florida as well.  I quit shopping at Amazon years ago and try to get everything local if possible. I do not want Bezo's drones filling the air around my house parachuting packages on me, nor do I want his contractors stealing my purchases.

In reply to by LadyAtZero