Bezos does the expected for once.

[Operational needs]

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

Fortunately for you, you weren’t around when the times were good and we were being treated well. Easy for you to see through all the FedEx BS. Lots of us had to learn the hard way. Good luck to you with Amazon if you DO go for it. I hope it works well for you and any Ground contractor who attempts it.

 

[Operational needs]

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.

How would they both benefit?

 

[It will be fine]

How would they both benefit?

Amazon gets experienced contractors.
Fedex gets a more legitimate appearance contracting with delivery companies that have contracts elsewhere.

 

[bacha29]

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

It would appear that Bezos thinks that he can cherry pick the best areas leaving the high mileage, low population, economically depressed rural areas to the Big 3 and still expects to get the same rock bottom rates. USPS might do it but I doubt that Brown or Fat Freddy would be willing to play the Bezos game.
What self respecting X contractor would want to have to deal with both Fat Freddy and Bezos the Weasel at the same time? They both want the same thing from you . Haul their junk for a price as close to zero as they can get away with and your dumb enough to do it while thinking that you're going to come out ahead.
If there's anything that's going to come out of this it will be rate cutting with the X contractor caught right in the middle of it.

 

[bacha29]

Amazon gets experienced contractors.
Fedex gets a more legitimate appearance contracting with delivery companies that have contracts elsewhere.

Contractors are cheap and plentiful. And by the way did you see the van Bezos was displaying that ADP's have to lease from him?..... Low roof Benz Sprinter's. Now given all the more you can get in one of those little panel vans how much in the way of profit do you think you'll make? Sure. if you're hauling it across the street or down to the next apartment building but what if you have to drive 40 miles to pick up your load then have turn around and go back?

 

[dmac1]

If fedex ground drivers were allowed to carry packages for Amazon on the same vehicle, it would be a great deal for them. But needing to have two vehicles crisscrossing routes all day simply means double the costs.
I see how it would benefit Amazon and Fedex to have contractors work for both, but it may also stabilize the ISP with the ability to swap drivers around based on need. Depending on the payscale, it could also mean that both companies would have more leverage over the ISP, because the ISP would have twice as much invested.

But I would think that there are local courier companies who would compete with ISP to service Amazon, so it won't simply be fedex contractors looking at this. And the fact that you are required to lease a van from them will make the case for real independent contractor status harder to make. This would look more like a franchise than even fedex ground, especially with the 'buy-in' arrangement. If someone 'buys in' will they have protection in the future via a guarantee of keeping the contract absent failing to service, or will Amazon reserve some right to cancel your contract and give it to a larger contractor. If I had contracted to service my home area, but a large contractor ended up with all the surrounding area, what protections are offered. Not everyone wants to have the hassle oh operating 40 vehicles.

 

[bacha29]

If fedex ground drivers were allowed to carry packages for Amazon on the same vehicle, it would be a great deal for them. But needing to have two vehicles crisscrossing routes all day simply means double the costs.
I see how it would benefit Amazon and Fedex to have contractors work for both, but it may also stabilize the ISP with the ability to swap drivers around based on need. Depending on the payscale, it could also mean that both companies would have more leverage over the ISP, because the ISP would have twice as much invested.

But I would think that there are local courier companies who would compete with ISP to service Amazon, so it won't simply be fedex contractors looking at this. And the fact that you are required to lease a van from them will make the case for real independent contractor status harder to make. This would look more like a franchise than even fedex ground, especially with the 'buy-in' arrangement. If someone 'buys in' will they have protection in the future via a guarantee of keeping the contract absent failing to service, or will Amazon reserve some right to cancel your contract and give it to a larger contractor. If I had contracted to service my home area, but a large contractor ended up with all the surrounding area, what protections are offered. Not everyone wants to have the hassle oh operating 40 vehicles.

What will an X contract and an ADP contract have in common?.......Nothing's binding!

 

[Oldfart]

Fortunately for you, you weren’t around when the times were good and we were being treated well. Easy for you to see through all the FedEx BS. Lots of us had to learn the hard way. Good luck to you with Amazon if you DO go for it. I hope it works well for you and any Ground contractor who attempts it.

Nice positive attitude.

 

[dmac1]

here's a link if allowed:

https://d3a8hw3k243rpe.cloudfront.net/static-assets/Download_Brochure.pdf

 

[bacha29]

here's a link if allowed:

https://d3a8hw3k243rpe.cloudfront.net/static-assets/Download_Brochure.pdf

Read it. Let's sum it up this way people have shot themselves for less. I mean look at the damn thing. You have to get your own DOT authority. Start with 5 routes but have to be at 20 routes in 3 months running little panel vans which are a suicide mission in the winter and hold very little No protected work areas or covenants no proprietary rights or goodwill. You will be required to offer healthcare benefits and I'd love to see what it will cost and the benefits will be nonexistent if purchased through Amazon same with workman's comp.
Bezos is like a 21st century coal baron and you have to buy everything from his company store.
Given the requirements the plan is pretty much limited to the investor class who has the economic strength to eat some big losses in the early going and given the modest return estimates and those are based on a best case scenario there are no shortage of ways out there to make better money.

 

[Bounty]

Read it. Let's sum it up this way people have shot themselves for less. I mean look at the damn thing. You have to get your own DOT authority. Start with 5 routes but have to be at 20 routes in 3 months running little panel vans which are a suicide mission in the winter and hold very little No protected work areas or covenants no proprietary rights or goodwill. You will be required to offer healthcare benefits and I'd love to see what it will cost and the benefits will be nonexistent if purchased through Amazon same with workman's comp.
Bezos is like a 21st century coal baron and you have to buy everything from his company store.
Given the requirements the plan is pretty much limited to the investor class who has the economic strength to eat some big losses in the early going and given the modest return estimates and those are based on a best case scenario there are no shortage of ways out there to make better money.

I know one guy on this forum probably thinks it’s great. No names mentioned, but we know who I’m talking about.

 

[bbsam]

Read it. Let's sum it up this way people have shot themselves for less. I mean look at the damn thing. You have to get your own DOT authority. Start with 5 routes but have to be at 20 routes in 3 months running little panel vans which are a suicide mission in the winter and hold very little No protected work areas or covenants no proprietary rights or goodwill. You will be required to offer healthcare benefits and I'd love to see what it will cost and the benefits will be nonexistent if purchased through Amazon same with workman's comp.
Bezos is like a 21st century coal baron and you have to buy everything from his company store.
Given the requirements the plan is pretty much limited to the investor class who has the economic strength to eat some big losses in the early going and given the modest return estimates and those are based on a best case scenario there are no shortage of ways out there to make better money.

Yes. We get it. You’re not interested.

 

[bbsam]

Read it. Let's sum it up this way people have shot themselves for less. I mean look at the damn thing. You have to get your own DOT authority. Start with 5 routes but have to be at 20 routes in 3 months running little panel vans which are a suicide mission in the winter and hold very little No protected work areas or covenants no proprietary rights or goodwill. You will be required to offer healthcare benefits and I'd love to see what it will cost and the benefits will be nonexistent if purchased through Amazon same with workman's comp.
Bezos is like a 21st century coal baron and you have to buy everything from his company store.
Given the requirements the plan is pretty much limited to the investor class who has the economic strength to eat some big losses in the early going and given the modest return estimates and those are based on a best case scenario there are no shortage of ways out there to make better money.

Have to get your own DOT #? Isn’t that something we’ve been wanting at Ground for years?

 

[bacha29]

Have to get your own DOT #? Isn’t that something we’ve been wanting at Ground for years?

Yes, but if you look at the Bezos deal allowing you to operate under your own DOT number is just about the only autonomy you have. Notice that there is no mention of the term "independent contractor" but rather "delivery service partner" . Clearly designed to try to avoid contractor/ employee litigation. And the Amazon manager is offering "advice". Oh sure, just like a jail is a "correctional facility" and an execution is "rehabilitation". Slick, but will DOJ, Treasury and the IRS buy it?

 

[dezguy]

I sure hope, with this announcement, the company is going to suspend all discounts to Amazon. Being that they're now a competitor, I don't even see why FedEx would even carry Amazon's stuff from here on out. We don't carry stuff for UPS, why should FedEx carry Amazon?

 

[bbsam]

Yes, but if you look at the Bezos deal allowing you to operate under your own DOT number is just about the only autonomy you have. Notice that there is no mention of the term "independent contractor" but rather "delivery service partner" . Clearly designed to try to avoid contractor/ employee litigation. And the Amazon manager is offering "advice". Oh sure, just like a jail is a "correctional facility" and an execution is "rehabilitation". Slick, but will DOJ, Treasury and the IRS buy it?

Maybe so. Sounds like the kind of headaches we contractors who stuck around have gotten used to.

I wouldn’t mind running 20 trucks and making $150,000 on top of what I make at Ground.

With my own DOT number I’d probably let the vehicle appearance go to hell and just keep replacing them every 5 years or so. Some guys act like once they pay off an asset they make loads of money. Maybe. I like getting new trucks though.

 

[FedGT]

Maybe so. Sounds like the kind of headaches we contractors who stuck around have gotten used to.

I wouldn’t mind running 20 trucks and making $150,000 on top of what I make at Ground.

With my own DOT number I’d probably let the vehicle appearance go to hell and just keep replacing them every 5 years or so. Some guys act like once they pay off an asset they make loads of money. Maybe. I like getting new trucks though.

20 trucks- 40 people- 7 days a week. Sounds like hell to me for $150,000. Largest amount of drivers I had was 13, replacing them often was bad enough but the pool just keeps getting worse. Times that by 3 and still only make similar money to having the 13 guys at FedEx...............I would take X.

 

[bacha29]

Maybe so. Sounds like the kind of headaches we contractors who stuck around have gotten used to.

I wouldn’t mind running 20 trucks and making $150,000 on top of what I make at Ground.

With my own DOT number I’d probably let the vehicle appearance go to hell and just keep replacing them every 5 years or so. Some guys act like once they pay off an asset they make loads of money. Maybe. I like getting new trucks though.

But what you don't know is if or when the area in which you currently operate will be selected nor do you know how much competition from other interested parties not to mention the stiff vetting process you'll have to successfully complete. In addition will they give you enough freight and enough revenue to get up to scale in the allotted time. In addition you don't know what X's reaction will be if your're selected
Your contract comes up for renewal X might say "it's us or him" . Now throw in the fact that your ADP does not appear to offer goodwill or proprietary rights it's essentially worthless.
You see based on what has been made public this ADP caper looks a lot like the old RPS contract that was in place between 1985-1992.

 

[bbsam]

But what you don't know is if or when the area in which you currently operate will be selected nor do you know how much competition from other interested parties not to mention the stiff vetting process you'll have to successfully complete. In addition will they give you enough freight and enough revenue to get up to scale in the allotted time. In addition you don't know what X's reaction will be if your're selected
Your contract comes up for renewal X might say "it's us or him" . Now throw in the fact that your ADP does not appear to offer goodwill or proprietary rights it's essentially worthless.
You see based on what has been made public this ADP caper looks a lot like the old RPS contract that was in place between 1985-1992.

How about this.

Just so you can sleep well at night, I will wait and see if it shows up in my area and then look more into it’s via. Sheesh bacha. You sure get uptight about the silliest things like all the known unknowns and stuff.

 

[bacha29]

How about this.

Just so you can sleep well at night, I will wait and see if it shows up in my area and then look more into it’s via. Sheesh bacha. You sure get uptight about the silliest things like all the known unknowns and stuff.

This thing by your own admission has caught your fancy I'm just pointing out a few scenarios that could occur. You know Bezos calls this arrangement a "partnership" which has a legal definition and requires the filing of a partnership federal tax return ( 1065) and each partners K-1. But if they were to flip you a 1099" miscellaneous income" the lawsuits are almost certain to start flying .