But IF IF IF you think that Bezos plans to continue to make profit from sales, and NOT delivery, he can make deliveries at a cheaper cost. Fedex makes an average profit on every delivery, and Bezos isn't going to be required to make a profit on delivery. He COULD break even, and that profit that FEDEX takes could go toward providing a better paid workforce. Even if Bezos takes half the profit to improve the companies bottom line, it leaves more to pay company drivers, or maybe to provide better vehicles, or even better customer service.
Also, the fact that one less move of the package is required (possibly) will save more money spent. Fedex has to pay drivers to haul trucks to local terminals, and depending on how the ADP system is set up, that cost could be elimkinated.
Amazon has thus far tried to give customers good prices for goods, and pays fairly well. My nephew worked in an Amazon warehouse and made more than he would have working at a fedex ground terminal. If they are paying warehouse workers better than fedex pays, I would think that Amazon drivers will make more than fedex ground drivers. Bezos can buy vehicles cheaper than ANY fedex ISP, and likely has enough buying power to save money on maintenance (tires, brakes, oil, etc), fuel, etc so drivers can make more. Even an ADP with 40 routes will be able to use buying power to get lower prices than the 5 route ISP.
40 routes is going to be cheaper to insure per route as well. There are so many savings potentially available to the ADP as compared to an ISP that drivers should be able to make an appreciable amount over what an ISP can afford to pay.
This is all just speculation for the most part, since this is just being rolled out. Fedex started HD with big promises and withing 2 months changed in Ground division's lap dog. HD was promised to be ONLY home delivery to contractors, with contractors serving one primary service area, and ONLY that one if they chose, and contractors could only work part-time if they wanted. They tried to cover too much area at once with too few contractors, and contractors were immediately required to do more than what they were promised. If Bezos makes the same mistake, and tries to grow faster than contractors are ready, Amazon will have big problems.
So far, the ADPs Amazon is using for PR sound positive, but fedex has contractors, some even on this site, who only tell the positive, so until there is a forum or site for Amazon ADPs and their drivers where they can vent safely, we won't know much.
I shop a LOT on Amazon, and save a LOT of money even with shipping, so I hope it works well and either allows better service or lower prices. Right now, I can track a package from 70 miles away going to a post office distribution center 120 miles away, then back to my local post office, then out the next day, for at least 2 days with multiple sorts, multiple loading, and multiple drivers all being paid for what one driver could do in one hour.
