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They pay their delivery people. They're a competitor to Amazon in that they've traded the operational cost of warehouses for the risks associated with crowdsour
by rgarcia 13y ago
They pay their delivery people. They're a competitor to Amazon in that they've traded the operational cost of warehouses for the risks associated with crowdsourcing (quality control, etc.). Amazon probably perceives the risk of crowdsourcing as too high, or at the very least it's outside of their operational "comfort zone".
- JonFish85 13y agoBut they're entirely different (to me). They essentially exist on top of other companies' operational costs of warehousing, trucks, etc, so those costs PLUS a profit (presumably) are built into Costco / Trader Joe's / whoever else they source from. They're a glorified courier system, it seems. If that's true, they're less a competitor to Amazon and more a competitor to FedEx / UPS / USPS.