Amazon’s Next-Day Delivery System Has Brought Chaos And Carnage To America’s Streets — But The World’s Biggest Retailer Has A System To Escape The Blame

Amazon drivers say they often have to deliver upwards of 250 packages a day — and sometimes far more than that — which works out to a dizzying pace of less than two minutes per package based on an eight-hour shift.

The system sheds costs and liability, even as it grows at lightning speed, by using stand-alone-companies such as Inpax to pick up packages directly from Amazon facilities and deliver them to the consumer — covering what’s known in the industry as “the last mile.” 

Amazon still relies on UPS and the US Postal Service for many deliveries. And it has captured the public imagination with press releases about futuristic drone delivery, which does not yet exist. But it’s this homegrown network that makes it possible to offer the amazing convenience of next-day and even same-day delivery that has become a cornerstone of its market dominance. By some estimates, nearly half of Amazon’s packages in the U.S. are now delivered this way. And the Seattle-based giant dictates almost every aspect of that operation, down to what drivers wear, what vans they use, what routes they follow, and how many packages they must deliver each day.

…UPS and FedEx, the traditional powers of the logistics world, are deeply invested in safety. UPS, which spends $175 million a year on safety training alone, even has a policy prohibiting drivers from taking unnecessary left turns to reduce exposure to oncoming traffic, finish routes faster, and save fuel. Both firms are also heavily regulated by the government, and many of their trucks are subject to regular federal safety inspections and can be put out of service at any time by the Department of Transportation.

But Amazon’s ingenious system has allowed it to avoid that kind of scrutiny. There is no public listing of which firms are part of its delivery network, and the ubiquitous cargo vans their drivers use are not subject to DOT oversight. But by interviewing drivers as well as reviewing job boards, classified listings, online forums, lawsuits, and media reports, BuzzFeed News identified at least 250 companies that appear to work or have worked as contracted delivery providers for Amazon. The company said it has enabled the creation of at least 200 new delivery firms in the past year, a third of which are owned and run by military veterans. Inpax gets fully 70% of its business from Amazon; some companies depend on the retail giant for all of their income.

…Amazon denies any responsibility for the conditions in which drivers work, but it has continued to contract with at least a dozen companies that have been repeatedly sued or cited by regulators for alleged labor violations, including failing to pay overtime, denying workers breaks, discrimination, sexual harassment, and other forms of employee mistreatment.

And when one group in Michigan voted to join the teamsters in protest against shoddy conditions and punishing hours without overtime pay, Amazon officials acted swiftly to counter further unionization efforts.

…Not long after the successful unionization vote, a team of Amazon officials paid a visit to Chicago, where they gathered top management from delivery firms operating in the city at a hotel west of town, according to two people who attended the meeting. The topic: how to ensure that what happened to Silverstar would never happen to them.

“The whole purpose of the meeting was to say to you, ‘Here’s how not get unionized. Because if you do, we pretty much don’t want anything to do with a union,’” said one attendee.

Two drivers for a different delivery company operating in the Los Angeles area said they were forced to skip mealsordered to urinate in bottles rather than stop for bathroom breaks, and advised to speed and not wear seatbelts to ensure they delivered more packages in less time.

Even though the Sprinter-style vans Amazon requires its delivery providers to use weigh several times more than most passenger cars, they fall just under the weight limit that would subject them and their drivers to Department of Transportation oversight, unlike most FedEx and UPS trucks.

In a sign of how business is booming, Amazon last summer bought 20,000 of these vans from Mercedes-Benz to be leased, through fleet managers, to its dedicated delivery companies around the country.

… Job postings by firms delivering Amazon packages, however, say commercial drivers licenses and prior experience aren’t necessary. Drivers are paid either a flat day rate or an hourly wage — which generally works out to between $15 and $18 an hour, with scant perks or benefits. With constant alternation between driving and loading and unloading packages, the job is physically demanding.

…Not all of Amazon’s packages are carried by its network of small providers; it continues to rely on UPS and the US Postal Service for many of its deliveries, particularly for bulky packages or for rural, harder-to-reach destinations. But with FedEx recently canceling its contract to deliver Amazon packages, a growing share of the huge delivery load is being carried by the network of tiny, lightly regulated firms in its vast national network.

Delivering billions of packages a year is by far one of the company’s top expenditures. But Amazon can better control those costs by squeezing its own delivery network. It not only can track every package, but also monitor payroll, insurance, and even van leasing costs for many of its delivery companies. That allows it to keep an eye on companies’ profit margins and adjust accordingly. Early this year, for example, Amazon stopped paying delivery companies extra money to cover the cost of a dispatcher in each delivery station, requiring the companies to pay that salary out of already thin margins or operate without them.

Amazon pays many of its delivery firms a flat fee per route, so when package volumes increase, and drivers need to be out on the road for longer, racking up more overtime, their margins are squeezed even tighter. One contract for a route in San Francisco reviewed by BuzzFeed News, for example, called for a fee of $279.50 per day. That money must cover the cost of the van, insurance, and any other overhead, plus the driver’s wages. 

…“Please take these unprofessional driver mistakes seriously,” she wrote. “They may cost you life.”

“This is about shitty driving, yes,” she added. “But this is about low-paid, inexperienced, and untrained delivery drivers operating gigantic vans they don’t know how to drive, under enormous pressure to deliver quickly. This is profit driven, corporate greed behavior without consideration for anyone else’s humanity.”

Amazon’s Next-Day Delivery System Has Brought Chaos And Carnage To America’s Streets — But The World’s Biggest Retailer Has A System To Escape The Blame

Jeezus…

Leave a comment