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I did some back of the envelope math on these a few years ago based on Amazon's truck numbers and proposed profit figures and they were between $7.18 to $28.74
by MattGaiser 5y ago
I did some back of the envelope math on these a few years ago based on Amazon's truck numbers and proposed profit figures and they were between $7.18 to $28.74 per day per driver. This was based on Amazon's optimistic figures.
With Amazon putting those numbers in the proposal, the real numbers would almost certainly be worse. Between minimum wage and gas, that margin is eliminated.
These are the urban equivalent of the contract chicken growers. Give them a flat rate and make them absorb increasing costs.
- dendriti 5y agoSurely the cited 0.10 USD per package delivered, plus fuel expenses, must be a typo?
- simfree 5y agoProbably not, Amazon's goal is to pay under the actual cost of delivery by offloading deliveries to these 3rd party companies.
- kahrl 5y agoAnd these 3rd party companies are not true contractors. Amazon is deeply involved in their day-to-day operations. To Amazon, DSP's are just useful fools who will destroy their credit and go into bankruptcy to support what Amazon knows to be an unsustainable business model.
- mikestew 5y ago"Your margin is my opportunity." If there were money to be made doing it, I can easily see a Amazon subsidiary squeezing Element (the van company) for their last little drop of margin, and then the Amazon sub doing it themselves. Or...Amazon is already squeezing Element, and Amazon just wants semi-intelligent meat sticks to drive the vans and carry packages. And because even minimum wage is too much to pay...