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re: Amazon Delivery Service, Surprisingly Effective, but is it Efficient?
Posted on 9/29/19 at 3:10 pm to Grassy1
Posted on 9/29/19 at 3:10 pm to Grassy1
Does anyone know any peeps who have done the dealio where Amazon offers you money and a route to be a driver for them, but as a owner/operator?
Sounded like a good deal, but man, with morons wanting ice cream in hours, you will be out there all day, putting miles, gas, and time into the routes.
Bezos isn't offering this to make you money, it's a taste, and lets him make even more on single operators rather than these shite companies he's dealing with right now, who hire people out of jail.
Sounded like a good deal, but man, with morons wanting ice cream in hours, you will be out there all day, putting miles, gas, and time into the routes.
Bezos isn't offering this to make you money, it's a taste, and lets him make even more on single operators rather than these shite companies he's dealing with right now, who hire people out of jail.
0
Posted on 9/29/19 at 3:24 pm to Grassy1
quote:
A lifetime ago, I worked for one of the two biggest parcel delivery companies for over a decade. It was a pretty well oiled machine,
quote:
is Is their delivery service operating efficiently enough to support themselves? They don't have the volume of UPS or FedEx, nor the history.
Well, they do have about a million times better tech, mapping, real time traffic, and logistics optimization.
Posted on 9/29/19 at 4:50 pm to N2cars
quote:
The spread between the cost and profit at Fedex and UPS is what Amazon was after.
Let's say, once it is all amortized out, that Amazon as an entity will cut their delivery costs 10%, with the added bonus of improving delivery times and customer service.
Even if the savings ultimately turns out to be in the single digits, that's still a pretty big # for Amazon.
It was a logical move for them as it plays to their strengths.
They'll leave the low profit/no profit deliveries to USPS/UPS.
There's a lot more to it, but it was easy to see them making this move.
I certainly understand their goal. It will be interesting to see if they're able to pull it off. I only have a cursory understanding of what it takes to run an effective delivery business, but seems to me that it wasn't an "easy" bet.
As you said. leaving the less profitable areas to UPS/USPS is a nice option indeed.
I suspect it will be a few years before we know if it pays off or not.
Posted on 9/29/19 at 4:53 pm to Putty
quote:
Well, they do have about a million times better tech, mapping, real time traffic, and logistics optimization.
Can't argue with that.
It's the low tech part of the equation that makes me wonder.
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