Amazon Wants Suckers!

Philo Bedo

Member
Former ups region/district staff level operations managers have that kind money to invest in that amazon delivery business.

Since they already know the delivery business they can make that business work.
Are they allowed to do that? Thought they had to sign an anti competition clause.
 

olroadbeech

Happy Verified UPSer
amazon is just selling franchises just like mcdonalds, subway , and all the rest. all the huge trucking companies do this. they encourage company drivers to purchase their own trucks and make a fortune.

it will be a win-win for Amazon....lowers their risk and capital expenditures . If the franchisee wins , they win. If the franchisee loses they still win . Their risk is minimal and they have suckers lined up anyway to take their place.

Some of the people will do very well just as big corporate franchise private owners do well. the percentage is not very high. It's almost like a pyramid.
 

Mutineer

Well-Known Member
amazon is just selling franchises just like mcdonalds, subway , and all the rest. all the huge trucking companies do this. they encourage company drivers to purchase their own trucks and make a fortune.

it will be a win-win for Amazon....lowers their risk and capital expenditures . If the franchisee wins , they win. If the franchisee loses they still win . Their risk is minimal and they have suckers lined up anyway to take their place.

Some of the people will do very well just as big corporate franchise private owners do well. the percentage is not very high. It's almost like a pyramid.

Gee, that reads almost exactly like what RPS did way back in what, '88? Which became FedEx Ground in '00.
And it sure was nice of XG to get roasted with all those class-action lawsuits so that any company that tries the contractor business model will have an example of what NOT to do.

And in the end, XG could've avoided most of the trouble they got into if they had simply NOT treated their contractors like expendable garbage and made them sooo angry.

Amazon will treat their contractors with kindness and respect. You bet they will. :devil2:
 

Rick Ross

I'm into distribution!!
I read somewhere yesterday that 40 trucks could have gross revenue up to $4.5 million, which was followed by the fact owners could earn up to the $300k profit mentioned earlier.

That is a pitiful return for all the risk and investment involved.
 

1989

Well-Known Member
I read somewhere yesterday that 40 trucks could have gross revenue up to $4.5 million, which was followed by the fact owners could earn up to the $300k profit mentioned earlier.

That is a pitiful return for all the risk and investment involved.
Have you seen all the details?
 

Rick Ross

I'm into distribution!!
Have you seen all the details?

No, but I saw a contract posted when they added their line haul contractors and it was a joke, contractors had zero protection. If I remember correctly the company could opt out with 30 days notice and the rates were low.

I'm guessing they will do something similar with these contractors.
 

bbsam

Moderator
Staff member
Gee, that reads almost exactly like what RPS did way back in what, '88? Which became FedEx Ground in '00.
And it sure was nice of XG to get roasted with all those class-action lawsuits so that any company that tries the contractor business model will have an example of what NOT to do.

And in the end, XG could've avoided most of the trouble they got into if they had simply NOT treated their contractors like expendable garbage and made them sooo angry.

Amazon will treat their contractors with kindness and respect. You bet they will. :devil2:
And after all of it, X simply shrugs their shoulders and points at the billions in profit on the balance sheet.
 

bbsam

Moderator
Staff member
I read somewhere yesterday that 40 trucks could have gross revenue up to $4.5 million, which was followed by the fact owners could earn up to the $300k profit mentioned earlier.

That is a pitiful return for all the risk and investment involved.
I’d take it.

I wouldn’t do it off the street but after 24 years experience, I’d do it.
 

Rick Ross

I'm into distribution!!
I’d take it.

I wouldn’t do it off the street but after 24 years experience, I’d do it.

That breaks down to $20 profit per truck each day, which is insanely low for the amount invested.

If you invested $2 million in FedEx routes or FedEx linehaul runs how much would you make?
 

Tightupser

Well-Known Member
I read somewhere yesterday that 40 trucks could have gross revenue up to $4.5 million, which was followed by the fact owners could earn up to the $300k profit mentioned earlier.

That is a pitiful return for all the risk and investment involved.

4.5 million with a 300k return with 40 trucks and 100 employees by what the site says which leave 42k or so for each employee not putting in gas and other cost literally will be paying those guys at most 15 a hour plus it says only way to make that is working 365
 
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