Bezos does the expected for once.

Discussion in 'FedEx Discussions' started by bacha29, Jun 28, 2018.

  1. bacha29

    bacha29 Well-Known Member

    This AM Bezos rolled out AMAZON DELIVERY PARTNERS Contracted third party final mile delivery stations. Third party contractors will be able to set up and operate their own stations and will be able to operate a maximum 40 vans from each station with as little as $10,000 down A Dan Sullivan/Fat Freddy knock off that will not allow contractors to grow to the point where they have some power and like XG contractors their bare existence will also depend entirely on their ability to find people willing to work long hours for next to nothing.

    This announcement coincides with this morning's earlier announcement of Amazon's purchase of Pillpak the online pharmacy company.
     
  2. Cactus

    Cactus Just telling it like it is

    They’ll still try to pass off the crappy stuff (like BFE towns miles away) to FedEx, the postal service and UPS.
     
  3. bacha29

    bacha29 Well-Known Member

    I would agree except to say his acquisition of Pillpak which is already licensed in 49 states may result in an accelerated movement toward the completion of a nationwide AMP network . If so then like the X model your survival as a contractor will depend entirely on the economic strength of the area in which you operate and your ability to find people willing to work for bottom of the scale money.
     
  4. vantexan

    vantexan Well-Known Member

    Cue Dano coming in to tell you why it won't work....
     
  5. STFXG

    STFXG Well-Known Member

    Putting together the paperwork now. Run 40 trucks for amazon? Might be worth it. Will see.
     
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  6. MAKAVELI

    MAKAVELI Well-Known Member

    Would you do both ground and Amazon?
     
  7. bacha29

    bacha29 Well-Known Member

    What is known is that you the so called "Amazon Delivery Partner" will be required to wear Amazon branded uniforms and you will be required to LEASE a Amazon branded delivery van from guess who? Now according to information released by Amazon a person delivering out of their own vehicle will earn $18-25 an hour but remember you will pay the vehicle expenses
    Now if you have to lease a van from Bezos pay for ALL of the related operating expenses what are you going to have left to pay your drivers? Does not appear to be much even if they were to work 70 hours a week not to mention the OT rules governing -10,000 GVW vans.
     
  8. Operational needs

    Operational needs Virescit Vulnere Virtus

    Good luck!
     
  9. Route 66

    Route 66 Socially Unacceptable Member

    Heckuva deal there! woot! woot! :thumbup1:
     
  10. STFXG

    STFXG Well-Known Member

    Yep. Just run two companies.

    Not required to lease vehicles from Amazon. They have partner deals to lease vehicles at discounted rates. Similar to purchasing through the FedEx partners. The pay structure is similar to a FedEx contract. Not sure on the numbers though.
     
  11. bacha29

    bacha29 Well-Known Member

    According to the press release ADP's will be required to lease from Amazon. Now they may be procuring them from a third party but rest assured the vehicle will still obtained form Amazon. Also it has been plainly stated that only the most lucrative areas of the country will play host to ADP.
    Now here's the question. Will Bezos still demand the same heavy discount for the boonie boxes he won't take when stops are 15 miles apart from one another?
    So have at it. I'm sure that you and your $10 an hour drivers out there 365 days a year are going to wallow riches beyond your wildest dreams.
     
  12. STFXG

    STFXG Well-Known Member

    I don’t have any drivers making less than $18.75 an hour. They don’t get time and a half, but they get at least that amount for every hour they work. You know anyone that’ll drive for $10 an hour? Send them my way. I’d be happy to make more than my driver’s currently do.
     
  13. bacha29

    bacha29 Well-Known Member

    Sounds like you've got them on piece work and you're in a metro area with at least an average cost of living and probably no benefits. that's nothing to brag about Now if you were to start another company the question is will you be able to at least match what your Ground mules are being paid on the money Bezos is willing to pay because word will eventually get out and if you're not matching what you're mules are getting at Ground given that ADP will be a 365 day operation chances are they are going to want to know why.
     
  14. FedEx GT

    FedEx GT Active Member

    Looked into it. The pay seems to be less than Ground pays contractors from the info I have seen. I can’t imagine hiring the scale they want contractors to be at 50-100 drivers plus and still only make “up to $300K”. That is a ton to manage for that type of income. Health benefits would be required to be paid at that level along with 7 day work weeks. I haven’t seen anywhere close to enough to make the plunge. Along with the fact it appears to be substantially easier to lose your routes from what I have seen by researching it than Ground.
     
  15. bacha29

    bacha29 Well-Known Member

    Indeed the stated reason for the creation of Amazon Delivery Partners was the fact that shipping costs for Bezos has doubled in just 2 years. Therefore the creation is purely for the purpose of creating a shipping alternative that will be much cheaper than X UPS or USPS.
    In addition Bezos says that those seeking to sign on will be thoroughly vetted and each station will have a maximum of 40 vans per station. Furthermore based on what I've read the ADP will have to drive to the Amazon delivery center to pick up your load so the question will be how far will you have to travel empty to get your load and then how far away from the delivery center will tour territory be?

    It would seem to be a case whereby the more information that is released regarding the plan the less attractive it looks.
     
  16. zeev

    zeev Member

    Deliver the easy stops and farm out the difficult areas to the big 3. You control the source you control everything
     
  17. bbsam

    bbsam Moderator Staff Member

    Yes
     
  18. Operational needs

    Operational needs Virescit Vulnere Virtus

    Says a man who likes to make money. Nothing wrong with that.
     
  19. bbsam

    bbsam Moderator Staff Member

    I don’t bleed purple. Never have, never will.
     
  20. bbsam

    bbsam Moderator Staff Member

    I would not be surprised to see X and Amazon put something together to “help” X contractors get into the Amazon game. Both would benefit from having contractors diversified.