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Aren't Amazon Truck Drivers hourly employees? What risk and liability do they have? I am not sure how this an MLM like your other examples

bri3d 4y ago
Amazon have a gig delivery program called Amazon Flex. Additionally, in many markets Amazon truck drivers aren't Amazon employees, they work for DSPs (Delivery Service Partners), although I think Amazon do require that individual drivers be full-time hourly employees with benefits, it's still a liability fan-out mechanism. Founding a DSP is marketed heavily at "entrepreneurial spirits" in various markets who aren't as likely to be skilled or experienced negotiators.
- selecsosi 4y ago
  Can't find the original article I read but here is some more info on the relationship the program maintains with "owners" >The materials touted that he could make more than $75,000 and perhaps as much as $300,000 every year. The application required that you have $10,000 in startup capital, but the ad he saw also said that the fee might be waived for veterans. >Aside from Ramos, all of the business owners and drivers interviewed for this piece see themselves as working primarily for Amazon, not for an independent small business. That mentality has added to the disappointment for workers seeking autonomy >“It’s not a partnership. This is working for Amazon,” the veteran said. “We DSPs are not business owners, we’re paid managers. They control every aspect.” >After the DSP owner is paid by Amazon, the owner then has to pay the drivers, taxes, leases on the vans, repairs to the vans, new clothing (the physicality of the job means some drivers go through gear every couple of weeks), worker’s comp and other costs. https://www.protocol.com/workplace/amazon-delivery-program-trap https://www.protocol.com/workplace/amazon-delivery-program-t...
  - hattmall 4y ago
    Same model as FedEx ground.
    - bri3d 4y ago
      FedEx ground is about as different as can be with the same "model" ("model" meaning "contracted firm does deliveries"). With FedEx P&D, routes are negotiated on a route by route basis, and are owned. As long as you own the route and meet the minimum requirements, you keep that route. You can sell it to another vendor, or buy more routes. The contractor manages the delivery schedule and logistics. The contractor purchases their own vehicles rather than leasing them from FedEx. They're paid per route and per package rather than based on a ratings model. Furthermore, FedEx pay for brand placement on vehicles and for branded uniforms. This is a much more equitable system: both FedEx and the contractor have skin in the game. The contractor company aren't vassals to the corporation: they own their trucks and can sell their routes and contract to another business if they'd like.

bri3d 4y ago

Amazon have a gig delivery program called Amazon Flex. Additionally, in many markets Amazon truck drivers aren't Amazon employees, they work for DSPs (Delivery Service Partners), although I think Amazon do require that individual drivers be full-time hourly employees with benefits, it's still a liability fan-out mechanism. Founding a DSP is marketed heavily at "entrepreneurial spirits" in various markets who aren't as likely to be skilled or experienced negotiators.

selecsosi 4y ago
Can't find the original article I read but here is some more info on the relationship the program maintains with "owners" >The materials touted that he could make more than $75,000 and perhaps as much as $300,000 every year. The application required that you have $10,000 in startup capital, but the ad he saw also said that the fee might be waived for veterans. >Aside from Ramos, all of the business owners and drivers interviewed for this piece see themselves as working primarily for Amazon, not for an independent small business. That mentality has added to the disappointment for workers seeking autonomy >“It’s not a partnership. This is working for Amazon,” the veteran said. “We DSPs are not business owners, we’re paid managers. They control every aspect.” >After the DSP owner is paid by Amazon, the owner then has to pay the drivers, taxes, leases on the vans, repairs to the vans, new clothing (the physicality of the job means some drivers go through gear every couple of weeks), worker’s comp and other costs. https://www.protocol.com/workplace/amazon-delivery-program-trap https://www.protocol.com/workplace/amazon-delivery-program-t...
- hattmall 4y ago
  Same model as FedEx ground.
  - bri3d 4y ago
    FedEx ground is about as different as can be with the same "model" ("model" meaning "contracted firm does deliveries"). With FedEx P&D, routes are negotiated on a route by route basis, and are owned. As long as you own the route and meet the minimum requirements, you keep that route. You can sell it to another vendor, or buy more routes. The contractor manages the delivery schedule and logistics. The contractor purchases their own vehicles rather than leasing them from FedEx. They're paid per route and per package rather than based on a ratings model. Furthermore, FedEx pay for brand placement on vehicles and for branded uniforms. This is a much more equitable system: both FedEx and the contractor have skin in the game. The contractor company aren't vassals to the corporation: they own their trucks and can sell their routes and contract to another business if they'd like.